Starbucks Stock's Fall Is Not Without Reasons

RCK Analytics profile picture
RCK Analytics


  • Coffee consumption in China is expected to soar significantly in the coming years.
  • Schultz can help the company come out of its current troubles, as he did in the past.
  • Coffee consumption in the U.S. has soared to two-decade high.

Frappuccino beverage from Starbucks Coffee

segray/iStock Unreleased via Getty Images

Investment Thesis

Starbucks is a leading brand with a wide moat. The company has sufficient ability to pass on cost increases to customers. It is facing some key challenges -- COVID-related restrictions in China, unionization efforts, CEO transition -- but the company

Bar chart store mix


5-year coffee prices

St. Louis Fed

Data by YCharts

This article was written by

RCK Analytics profile picture
We provide end-to-end financial research services across asset classes. We are passionate about stocks and investments. We take pride in providing invaluable investing insights in an easy-to-understand way. .Chandan Khandelwal leads RCK, as its co-founder & CEO. He is a Chartered Accountant and Financial Consultant with more than 15 years of experience in Finance, Stock Market, Assurance and Business Advisory.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Recommended For You

Comments (5)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.