McDonalds reported its first decline in sales since the Covid pandemic, and Starbucks is suffering a similar fate, inasfar as they are both vastly profitable companies with customer-gouging margins learning the limits of consumer unthrift.
Starbucks sales dropped 3% globally at stores open for at least a year, including a 2% drop in its home North American market. And that masked how steep the decline was for Starbucks last quarter: Total transactions at North American stores open at least a year fell 6% in the quarter. That was offset, in part, by higher prices.
In other words: Fewer people are going to Starbucks and buying drinks and food. It was Starbucks' second-straight quarter of sales declines.
Starbucks' struggles reflect consumer fatigue with high prices at food chains, restaurants and stores.
These news sites never post the context: "Revenue: US$35.98 billion, Operating income: US$5.871 billion." "Struggles" indeed.
No-one is suffering at Starbucks. They're just surprised that $6 coffee is peaking. Try the pork!