Analysts' main concern about Starbucks is the slowdown in its US business growth.
Previously, Wade Bush Securities, a research institution, downgraded Starbucks from "outperforming the market" to "neutral" and lowered its target price from $70 to $56.
The agency pointed out that in Q4 of 20 17, the same-store sales growth rate of Starbucks in the US market was only 2%; Last year, the growth rate of business in the Americas, including the United States, Canada and Brazil, dropped from 7% in 20 15 to 3%. It is estimated that the growth rate of Q2 same-store sales in the US market will be 2% in fiscal year 20 18 and 3% in the second half of the year. The growth rate of same-store sales in fiscal year 20 19 is expected to be 2.5%.
Since American business accounts for about 70% of Starbucks' operating profit in fiscal year 20 17, this trend is really a big problem for the company.
Analysts believe that the main problems facing Starbucks in the United States are: too many stores and too high prices.
The world's first Starbucks opened in Seattle on 197 1. At present, the number of Starbucks stores in the United States is about 14000, which is four times that of McDonald's coffee brand. Among them, there are 8222 direct stores and 5708 franchise stores. The company also operates more than13,000 stores in markets outside the United States.
Mintel, a consulting company, said that by 20 15, the number of professional coffee shops in the United States has reached 3 1490; This doesn't count the number of shops that still sell coffee.
Starbucks also launched a new brand named "Zhen Xuan" to further promote high-end products. To this end, the company will open large baking workshops in Seattle, new york, Tokyo, Shanghai and Chicago. However, from the current operating situation, analysts are not optimistic about this format.
On March 22-26, Starbucks launched a peach-flavored limited-time drink "Crystal Ball Frappuccino" in the United States, Canada and Mexico (bottom right), but it did not get the same media attention as "Unicorn Frappuccino" (bottom left). Because the taste of "Unicorn Frappuccino" disappoints consumers, diners are reluctant to try "Crystal Ball Frappuccino".