Starbucks (NASDAQ: SBUX) has not been able to win over customers in recent years. The company has made efforts to remove in-store comforts, its CEO made controversial comments likening working for the chain to being a concentration camp prisoner, and it made an ill-timed denouncement of a union post in support of Palestine.
Looking at SBUX’s stock market performance over the last 12 months, it seems that the company’s attempt to remain apolitical was the final straw. Between July and October 2023, Starbucks shares remained relatively stagnant, then began to rise in early November before ultimately plummeting. On November 11, SBUX shares were just above $107, and at the time of writing, the price stands at $77.13.
Overall, the boycotts have caused the stock to drop by 27.92% in the last eight months, and SBUX shares are down 22.21% since the start of 2024.
Starbucks has become a target for boycotts, despite not being on BDS’ official list, making it one of the companies hardest hit in the stock market. In comparison, McDonald’s (NYSE: MCD), another prominent chain targeted by boycotts, has seen its shares remain near the same price as in October 2023.
There are several reasons for Starbucks’ stock plunge. The company’s ties to Nestle (SWX: NSLE) have put it on activists’ radar, and allegations of union-busting have worsened the issue. Additionally, the company’s efforts to improve efficiency have come at the expense of comfort and identity. This, coupled with the wild fluctuations in the price of coffee in the commodity markets in 2024 and persistent inflation issues, has contributed to Starbucks’ woes and made it a prime target for boycotts.
