Starbucks isn't shifting fast enough to meet changing demand, and sales are slumping. Management is intent on providing value to customers, but that can mean a number of different things.

Suddenly we're headed for a recession. Or so it seems on Wall Street.

Increased competition and a price-conscious consumer are hurting Starbucks.

Macroeconomic headwinds are pressuring financial results at leading consumer goods companies. Shares of Kraft Heinz, Hershey, and Starbucks are all down 30% or more from their previous highs.

NEW YORK, NY / ACCESSWIRE / August 5, 2024 / Levi & Korsinsky notifies investors that it has commenced an investigation of Starbucks Corporation ("Starbucks") (NASDAQ:SBUX) concerning possible violations of federal securities laws. On May 1, 2024, Starbucks announced Q2 2024 results well-below expectations and Starbucks' own projections, and then announced significantly reduced full-year guidance for 2024.

Starbucks continues to struggle with same-store sales declining in both the U.S. and China. The company says it's seeing some "green shoots" in the U.S. as it looks to turn around the business.

The market is caught between excitement over Fed rate cuts and nervousness over weakening consumer trends, unemployment, and falling wage growth. I've been discussing the ongoing economic weakening, declining consumer spending power, and labor market struggles for months. I discuss my call for a 2024 recession, data on weakening consumer trends, the impact of Fed rate cuts on big tech, and a cautious buy list.

Starbucks reported a global same-store sales decline of 3% and missed revenue expectations by $130 million in its fiscal third-quarter earnings on July 30, 2024. Its share price has tumbled nearly 25% in the past year.

Starbucks reported decreasing customer transactions in its latest quarter as it grapples with more cautious consumers.

Over the last year, Starbucks has seen a major deceleration in consumer buying activity. Conversely, rival Dutch Bros is witnessing surging demand as it expands across the country.

Starbucks' sales fell 2% in the second quarter of 2024. The coffee chain opened 364 new locations, which should have helped push sales higher.

The bull run continues for SPY in July, with the ETF adding 1.21% to its year-to-date return. After breaking a 3-month winning streak in June the watchlist comes back strong in July posting a gain of 5.72%. The top 10 stocks on the watchlist for August 2024 offer a 3.66% dividend yield, more than double the S&P 500.