Starbucks sales see 7% drop, largest since pandemic, amid Gaza boycotts
The company has been grappling with protests and boycott campaigns on social media due to the Israel-Gaza war and the union fight in the United States.
US coffee giant Starbucks is set to see its steepest fall in sales in the fourth quarter of 2024 since the coffee stores were shut down during the COVID-19 pandemic, according to preliminary results released Tuesday. The announcement comes as the company continues to face Gaza war-related boycotts across the world, which are related to the organization’s perceived support of Israel.
The firm reported a preliminary fourth quarter revenue that fell 3% year over year to $9.1 billion, while adjusted earnings per share fell 24% to $0.80. Global comparable store sales declined 7%, the sharpest fall since the fourth quarter of 2020, when pandemic lockdowns pushed same-store sales down 9%.
The company said in its results that the fall was mainly driven by softness in the North American market’s revenues in the quarter, specifically a 6% decline in US comparable store sales, driven by a 10% decline in comparable transactions. However, this was partially offset by a 4% increase in average ticket, Starbucks said.
The company has been grappling with protests and boycott campaigns lauon social media around the Israel-Gaza war and the union fight in the United States.
