$Starbucks (SBUX.US)$ My thoughts: Being killed in almost ev...
My thoughts:
Being killed in almost every market (boycotts in some countries) including their local US market as a result of price inflation trends.
With price squeezes being they are now, even if the central banks ease monetary flow, there will be lag time before it can recover original customer flow willing to pay $7 for a cup of coffee.
About its new CEO;
Although the new CEO is impressive in turning around Chipotle, i would have preferred a investor CEO which would be better suited in making use of Starbucks very healthy cash positions.
TLDR; a new CEO won’t make a $7 cup of coffee easier to digest for customer flow in current climate. The company is not worth the price increase it justified the day before.
I expect price to fall shortly after the ex dividend date on 16 august.
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Ondel Ondel : That's why you invest in commodities. Invest in the Coffee, not the companies
SaqibSyed : You're absolutely right. The impact of inflation has led to significant price hikes, making it difficult for brands to retain their customer base, especially in competitive markets. Even if central banks ease monetary policy, it won't immediately reverse the effects. Consumers may still be reluctant to spend $7 on a coffee, especially when more affordable options are available. The recovery process will likely take time, and businesses will need to find innovative ways to adapt to these new economic realities.