Starbucks (NASDAQ: SBUX) has done relatively little to endear itself in recent years as it worked to strip away to the in-store comforts, had its CEO apparently compare working for the chain to being a concentration camp prisoner – and try to sell it as a good thing – and made an ill-timed denouncement of a union X post in support of Palestine.
Looking at SBUX’s stock market performance in the last 12 months, it would appear that the latter of the three – the alleged attempt to remain apolitical – proved to be the straw that broke the camel’s back.
Indeed, between July and October 2023, Starbucks shares mostly traded sideways, only to start rising by early November and then, finally, to plunge. On November 11, SBUX shares stood just above $107, and Starbucks price today, at press time, stands at $77.13.
In total, the boycotts appear to have depressed the stock by 27.92% in the last eight or so months, and SBUX shares are down 22.21% since 2024 started.
Why is Starbucks stock down so much?
Starbucks has been an interesting target for the boycott given that it, despite not being on BDS’ official list – at least not in relation to the current phase of the Israeli occupation of and onslaught against Palestine – it is one of the biggest firms to have suffered extensively in the stock market.
For context, McDonald’s (NYSE: MCD) – another prominent chain to have been targeted – has seen its shares remain near the same price as they were in October 2023. Indeed, MCD stock rose rapidly in the final months of last year and the first of this one, only to substantially drop since.
There may be several reasons for such a dynamic. Starbucks links to Nestle (SWX: NSLE) – the posterchild for unsavory corporations – have already put it on the activists’ RADAR and the allegations of attempted union busting attempts in recent years only exacerbated the issue.
Additionally, along with the aforementioned and extensively analyzed work to improve efficiency – work that generally came at the expense of comfort and identity – SBUX was forced to contend with the wild fluctuations of the price of coffee in the commodity markets in 2024.
Finally, the persistent inflation issues and the associated cost-of-living crisis may have contributed to Starbucks’ woes – and its appeal as a boycott target – and could have helped partially price the firm out of the market.
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Source: https://finbold.com/heres-how-much-starbucks-stock-fell-due-to-israel-hamas-boycott/