Starbucks' Sales May Get a Boost This Quarter, but It Could Come at the Cost of Lower Margins
(NASDAQ: SBUX) needs to find a way to get its business going again. The company has been struggling to grow its top line, and investors have been dumping the stock. Year to date, Starbucks' stock has fallen by around 20%. It's trading near its 52-week low but even though its valuation is reduced, investors haven't been rushing to buy the stock.
The company is working on ways to generate growth, but it could come at a steep cost: lower margins.
Consumers are trying to cut costs amid inflation and swapping out Starbucks coffee for something cheaper is an easy way to accomplish that. With many coffee shops to choose from, Starbucks' brand loyalty is being tested. And the results haven't been great as sales have been declining.
Source Fool.com