Starbucks Shares Plunge 7.51% on Poor Q2 Results

Starbucks shares fell sharply after the company reported weaker-than-expected second quarter results, missing analyst estimates for both earnings and comparable store sales. The coffee giant's global comparable store sales declined 1%, with North America down 1% and international markets down 2%, while China sales were flat. Despite opening 213 new stores and CEO Brian Niccol's optimism about the 'Back to Starbucks' turnaround plan, analysts expressed concern over the pace of recovery, citing ongoing headwinds, market share challenges, and brand issues. Several Wall Street firms downgraded or lowered price targets for the stock, projecting a slower, more stretched recovery timeline. The stock dropped more than 6% in pre-market and early trading, reaching lows not seen in the past year. Analysts retain a moderate buy consensus, but expectations for a quick rebound have diminished.