SBUX - Why Starbucks Stock Lost 19% in the 1st Half of the Year
2024-07-14 21:43:59 ET
Stabucks (NASDAQ: SBUX) stock fell 19% in the first half of the year, according to data from S&P Global Market Intelligence . The coffee giant is struggling with growing its sales, and it looks to be out of step with changing coffee-consumption trends.
It's always counterintuitive to imagine that a company's success can lead to its failure, but it's actually quite logical. Take Starbucks. It has so many stores and such a distinctive model that if there's a challenge to that model, it's not easy to change it. And it works this way for any great industry leader. That's why you often hear leaders tout "agility" as a positive quality. Trends change and industries need to adapt.
In fact, this is not Starbucks' first go at this. It was struggling with its branding and mission after CEO Howard Schultz left the company, and he returned in 2008 to redefine the company's image and model. That's when Starbucks became the "third place" for customers to hang out and ushered in a new growth era for the coffee king.
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Why Starbucks Stock Lost 19% in the 1st Half of the Year