Starbucks, and their CEO Howard Schultz, went all in on Hillary Clinton for President. As a result, their stock price burned as bad as their coffee beans.
Schultz didn’t officially endorse Clinton until this summer, but he has been highly critical of Republicans, and Donald Trump in particular, for more than a year. He also has a history of using Starbucks to promote many liberal causes. This led to a wide effort by conservatives to boycott Starbucks products, and like Target, the company is feeling the pinch.
According to Investopedia, Starbucks’ stock price has plummeted 13.42% over the past 12 months. Their stock yield is a paltry 1.83%.
While it is impossible to blame falling stock prices on a conservative boycott, it’s hard to figure out how Starbucks can be losing money in a coffee-addicted country, UNLESS consumers are sick of your product.
It should be noted that the conservative backlash against Starbucks started long before this Presidential race. In 2013, Schultz told customers and stockholders that supported traditional marriage that they should take their business elsewhere. The company at the time took a vocal stand for gay marriage.
Last year, Schultz suggested that Starbucks baristas give customers a lecture about race relations. That did not go over well.
In response to Donald Trump’s win, Schultz said “I am stunned. We cannot know what the precise impact will be on our country and the rest of the world. I am hopeful that we will overcome the vitriol and division of this unprecedented election season.”
Schultz may have been stunned, but not as much as his customers when they have to pay $7 for a cup of coffee that costs 50 cents to make.
By the way, are you still supporting Starbucks? And if so, why?
If you’re looking for a good Starbucks alternative, you could click here and try out Military Grade Coffee, the strongest coffee on the planet, with a portion of the proceeds donated to help military members and their families.
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