Transcription
We've got big problems at Starbucks. Their stock price, it just crashed by almost 20%. They're reporting lower sales. Fewer customers are coming into Starbucks. Their CEO said the consumer is really stretched and is no longer coming into the store at the same rate.
And one has to wonder, why are fewer people coming to Starbucks and buying overpriced lattes? Well, I mean, the cost is one reason. Everywhere you go into a Starbucks, you can't walk out of there spending less than $5 or $6 on a drink. And in this economy, where people are struggling to save and credit card debt is spiking, I think a Starbucks latte, that's one of the first things that people are now cutting. And you're now seeing that show up in their earnings report.
Their CEO was very clear. He said it was a horrible quarter and that they need to do better in the future. This, to me, is a concerning sign for not just Starbucks, but the U.S. economy. Because this is one of America's biggest brands, and when one of America's biggest brands is reporting declines in sales, it could be a sign that the U.S. consumer is about to crack.