Amid calls for boycott and protests, Seattle-based Starbucks Corporation has lost approximately 11 billion dollars in value.
Since the November 16 Red Cup Day promotion, Starbucks has experienced a significant setback in its shares, plummeting by 8.96 per cent within a 19-day period, according to a report by PTI.
This decline has led to a staggering loss of nearly $11 billion in market value. Analysts point to sluggish sales and a muted response to the holiday season’s offerings as key contributors to this downturn.
The stocks declined for 12 sessions straight, and currently is around $95.80 per share, down from its yearly high of $115.
The company has denied wrongdoing in the scenarios but faces the challenge of maintaining its brand reputation amid divisive global issues.
A recent wave of boycotts against Starbucks is part of a larger movement targeting global brands over their alleged support for Israel. Responding to the financial impact of this boycott, Starbucks in Egypt took measures to cut expenses, including laying off workers in late November.
The repercussions of the boycott have led to significant challenges for Starbucks in Egypt, prompting the necessity for expense reductions as a strategic response to the economic strain caused by the ongoing global boycott.