(Bloomberg) – Starbucks Corporation. Shares have suffered a record string of losses as concern grows that sales trends at the coffee giant have slowed in recent weeks.
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The stock fell 1.6% on Monday, falling for the 11th straight session in the longest decline since Starbucks debuted in 1992. In all, the decline wiped out 9.4% of Starbucks’ market value, a decline of roughly $12 billion.
Third-party sales data indicated a “material slowdown” at Starbucks in November after the coffee giant posted strong 8% sales growth in its fiscal fourth quarter, JPMorgan Chase & Co. said. analyst John Evanko wrote in a note on Monday.
Ivanco lowered its U.S. comparable sales estimate for the first quarter to 4% growth from the same period last year, to reflect what may be a less successful Christmas holiday promotion than its fall Pumpkin Spice Latte event. He had expected a 6% jump in quarterly domestic store sales.
Starbucks shares rose in the first half of November, after the coffee company reported quarterly results that beat expectations and delivered a better-than-feared sales forecast for fiscal 2024. But the stock has fallen over the past two weeks amid concerns about “still-” slow China data. ” and sales trends, according to Ivanco, which has an overweight rating on the stock.
Wedbush Securities analyst Nick Setian said investors are concerned that comparable sales in the United States may not live up to consensus expectations in the current quarter as credit card data has indicated a slowdown over the past three weeks or so. He has a Neutral rating on Starbucks, calling the stock one of the most sensitive to signs of consumer weakness.
Sales trends in the snack food and coffee industry slowed on a weekly basis during the seven-day period through November. 19, according to data-driven research firm M Science. The sales slowdown was driven by softer trends at Starbucks, analyst Matthew Goodman wrote in a Dec. 12 note. 1. This marks the third straight week of slowing trends amid recent boycotts and labor strikes, including Red Cup Day (November 16), which affected up to 200 locations in the US.
Starbucks shares are down 1.6% this year, compared with an 11% gain for the S&P 1500 Composite Restaurant Index.
(Updates with closing prices)
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