What's happened
Starbucks faces challenges with declining sales in the US and Middle East, leading to weaker-than-expected quarterly earnings and a significant drop in share prices.
Why it matters
Starbucks' struggles with sales in key markets like the US and the Middle East have significant implications for the company's financial performance and future strategies. The decline in sales and share prices could impact investors, employees, and the overall coffee industry.
What the papers say
Former Starbucks CEO Howard Schultz has called for an overhaul of the company's US operations to improve the customer experience. Meanwhile, Starbucks CEO Laxman Narasimhan has cut annual guidance for the third straight quarter after the company's worst performance since the pandemic, with declining sales in all geographic segments, including China.
How we got here
Starbucks has been facing challenges with declining sales in the US and other key markets, leading to a decrease in revenue and earnings. The company's struggles have been attributed to various factors, including poor weather, fewer customer visits, and supply chain issues.
Common question
More on these topics
-
Starbucks Corporation is an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington.
-
Laxman Narasimhan is an Indian-American business executive, who is the chief executive of Reckitt Benckiser, having previously been chief commercial officer at PepsiCo.
-
Howard D. Schultz is an American businessman. He served as the chairman and chief executive officer of the Starbucks Coffee Company from 1986 to 2000, and then again from 2008 to 2017.