Shares of Starbucks Corp. have experienced an unprecedented 11-day decline amid growing concerns that sales momentum at the coffee giant has waned in recent weeks, as reported by Janet Freund and Katrina Compoli for Bloomberg.
Starbucks shares experienced an upswing in the first half of November following better-than-expected quarterly results and an optimistic sales outlook for fiscal 2024.
The stock recorded a 1.6% drop on Monday, marking the 11th consecutive session of losses—the longest such streak since Starbucks went public in 1992.
The cumulative downturn has wiped out 9.4% of Starbucks' market value, translating to a loss of nearly $12 billion. JPMorgan Chase & Co. analyst John Ivankoe noted a "material slowing" at Starbucks in November, citing third-party sales data, following the coffee company's robust 8% comparable sales growth in the fiscal fourth quarter.
In response to the apparent sales deceleration, Ivankoe revised down his first-quarter US comparable sales estimate to 4% growth year-over-year, anticipating a potentially less successful Christmas holiday promotion compared to the fall Pumpkin Spice Latte event.
His earlier projection had anticipated a 6% increase in quarterly domestic same-store sales. Starbucks shares experienced an upswing in the first half of November following better-than-expected quarterly results and an optimistic sales outlook for fiscal 2024.