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Starbucks too expensive with more stores than McDonald's in US: Wall Street

Starbucks has been struggling for more than a year to lure the traffic needed to deliver the robust growth investors expect

Reuters 

Starbucks Corp has too many stores and its prices are too high, Wall Street analysts are starting to agree, as they seek to explain the company's cooling US growth. The Seattle-based chain now has more US locations than McDonald's Corp but it has been struggling for more than a year to lure the traffic needed to deliver the robust growth investors expect. Executives last week warned that 2018 same-store sales growth would be at the low end of its forecast. Starbucks reported a 2 per cent US quarterly same-store sales gain that fell short of expectations on flat holiday ...

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First Published: Sat, February 03 2018. 22:10 IST
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