Starbucks Sales Decline Amid Support for Israel
Starbucks Reports Mixed Financial Results Amid Protests and Boycotts
Starbucks recently released its financial results for the second quarter of the 2025 fiscal year, which concluded on March 30. The coffee giant reported a notable decline in global comparable store sales, which decreased by 1 percent. In North America, sales dropped by 1 percent, while in the United States, the fall was even steeper at 2 percent.
Despite these challenges, Starbucks saw a 2.3 percent increase in overall revenue, amounting to $8.76 billion compared to the same period last year. However, the company’s profit took a significant hit, plummeting by 50.3 percent to $384.2 million. This led to earnings per share dropping by 50 percent year-over-year, down to 34 cents, falling short of market expectations.
Impact of Geopolitical Issues on Sales
Starbucks has also been grappling with backlash due to its perceived support for Israeli actions in Gaza, leading to protests and boycott campaigns. The company noted that these external factors have contributed to a continued decline in global sales for five consecutive quarters. The latest figures reflect a decrease of 2 percent in income during the January-March period of the previous year, showing a worrying trend.
Sales figures from prior periods show an alarming trend as well; global sales declined by 4 percent since the end of 2020, a record first decline for the brand. The company reported declines of 3 percent in the April-June period, 7 percent in July-September, and 4 percent in October-December of last year.
As Starbucks navigates these challenges, its future performance will largely depend on its ability to address both internal sales strategies and external pressures. With the geopolitical landscape seemingly affecting consumer sentiment, maintaining customer loyalty will be crucial for the coffee chain moving forward.
