FRANCHISE HERALD
Wednesday April 23, 2014

updated - April 23, 2014 Wednesday EDT

Starbucks Locations See Less Customers, Drop 11% in Quarterly Shares

Jul 27, 2012 12:23 PM EDT | By Zanub Saeed
Starbucks Coffee Beans and Cup
Starbuck's new iOS update protects users usernames, e-mail addresses, and passwords.(Photo : Reuters)

By Zanub Saeed

Due to slowed sales at stores across the country, Starbucks corporation was found to have dropped 11 percent in shares on Friday, its biggest one-day drop in 12 years, reported Reuters.

Apparently the number of customers visiting Starbucks for their coffee and caffeinated drinks decreased in June and July, said Reuters, and that traffic into the store was "noticeably down." Starbucks was found to miss its quarterly profit expectations by just two cents a share. Starbucks wasn't the only major food and drink industry suffering recently, as McDonald's Corp and Chipotle Mexican Grill Inc released disappointing quarterly numbers as well, said Reuters.

Like Us on Facebook

"I'd be cautious right now," Investment Technology Group Inc research analyst Steve West told Reuters this week. "They're all high-valuation stocks. It's live by the sword, die by the sword."

Starbucks, which was reportedly rated "Buy" by 16 analysts, "Outperform" by seven, "Hold" by six and "Underperformed by one analyst," listed Reuters, had its shares decrease by $5.78, or about 11 percent, by Friday, at $46. 63 on Nasdaq.

Even with new franchises opening from the Starbucks brand like Evo fruit drinks and the upcoming opening of the first Tazo tea shop, customer number declined.

"They're proactive in the things they're doing," said Williams Capital Group analyst Marc Riddick, who had a "Buy" rating on the shares, said Reuters.

 

Get the Most Popular Franchiseherald Stories in a Weekly Newsletter
© 2014 Franchise Herald. All rights reserved.
Featured Video : Bizarre Bites: Doritos Ramen at Brooklyn's King Noodle
TRENDING ON THE WEB

Connect With Franchise News

Email Newsletter

TOP 10 FRANCHISE FOR 2013

  • RANK
    FRANCHISE NAME
    STARUP COSTS
  • 1nc
    Hampton Hotels
    $3.7M - 13.52M
  • 2nc
    Subway
    $85.2K - 260.35K
  • 3up
    Jiffy Lube Int'l. Inc.
    $196.5K - 304K
  • 4down
    7-Eleven Inc.
    $30.8K - 1.64M
  • 5up
    Supercuts
    $103.55K - 196.5K
  • 6up
    Anytime Fitness
    $56.3K - 353.9K
  • 7down
    Servpro
    $133.05K - 181.45K
  • 8down
    Denny's Inc.
    $1.18M - 2.4M
  • 9down
    McDonald's
    $1M - 2.16M
  • 10down
    Pizza Hut Inc.
    $295K - 2.15M
Real Time Analytics