Starbucks shares have plummeted more than 17% in value since the company revealed a sales slump in an earnings report last week.
“The brand is incredibly resilient, but it’s clearly not business as usual,” former CEO Howard Schultz said in a post on LinkedIn on Sunday.
The coffee giant is viewed by many analysts as a bellwether for consumer spending, which accounts for nearly three-quarters of the nation’s economic activity. The company’s latest struggles, in turn, raise a question: Is the engine of the U.S. economy faltering, or is something wrong at Starbucks?
The explanation involves a little of of both, analysts told ABC News.
The experts described consumers fatigued by a years-long bout of inflation alongside high borrowing costs. In addition, they added, Starbucks has struggled to adapt to a post-pandemic economy, and also faces backlash over controversy tied to its alleged…
