Starbucks Corporation, a Seattle-based business, has lost around USD 11 billion dollars in value, or 9.4 per cent of its total market capitalization as per Mint report.
The boycotts at the chain of restaurants located in Seattle, Washington, have a long history and deal with delicate geopolitical concerns. The corporation got into trouble after Starbucks Workers United, the union that represents many of its baristas, tweeted its support for Palestinians.
The industry analyst, said, “Amid an ongoing boycott due to the Israeli occupation’s aggression against the Gaza strip, the undercurrent of discontent signals a challenging brew for the company’s future.”
After falling for 12 straight stock market sessions—the longest run since the business went public in 1992—Starbucks’ stock is now trading at about USD95.80 per share, below its yearly high of USD115.
The company has denied wrongdoing in the scenarios but faces the challenge of maintaining its brand reputation amid divisive global issues.
As per Laxman Narasimhan , CEO, Starbucks, even in light of shifting consumer behavior and macroeconomic problems, he is confident in the company’s broad channels and ability to engage customers.