Seattle based Starbucks Corporation is grappling with substantial losses, shedding approximately $11 billion and erasing 9.4% of its total value due to escalating global political tensions. Since its November 16 Red Cup Day promotion, Starbucks shares have plunged by 8.96% in a 19-day span, reflecting concerns over slowing sales and a tepid response to holiday offerings.
Boycotts against the Seattle-based chain stem from deep-rooted geopolitical issues, sparked by a tweet from Starbucks Workers United expressing solidarity with Palestinians amidst the Israeli occupation’s actions in Gaza. Industry analysts view this as a formidable challenge for the company’s future.
Starbucks stocks have witnessed a record 12-session decline, the longest streak since its 1992 IPO, with current stock prices around $95.80 per share, down from the yearly high of $115. While the company denies wrongdoing, it grapples with preserving its brand amid divisive global issues.
Despite these challenges, Starbucks CEO Laxman Narasimhan remains optimistic about the company’s diversified channels and its ability to engage customers. The ongoing global boycott, tied to brands supporting Israel, has reverberated to Starbucks in Egypt, resulting in reported layoffs and expense cuts due to financial strain.
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