Starbucks (SBUX) stock has fallen for the eleventh straight session, representing the longest losing streak for the coffee giant since its IPO. This extended decline reflects mounting concerns over slowing consumer demand trends at Starbucks.
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JOSH LIPTON: And here on Starbucks, let's check that out. Shares declined for 11th consecutive session, marking the longest route since Starbucks public debut back in 1992. The run of losses comes amid growing concerns that sales trends have cooled.
So this is a rough stretch here. What's going on is third party data signals a material slowing at Starbucks in November. That is what JP Morgan was telling their clients in this note. They, in fact, lowered their Q1 us comparable sales estimate to-- it looks like 4% growth compared to what they were looking-- compared with a year ago period. And you do wonder, is that another sign of consumer caution, you know?
JULIE HYMAN: Yeah. Well--
JOSH LIPTON: There is no better signal, I think, you could argue, maybe in Starbucks about potential consumer weakness.
JULIE HYMAN: So that little downdraft on the right there is that 11-session slide, that's taken the stock down by about 9%. So you could argue some of what John Ivankoe and the folks over at JP Morgan are saying is already reflected in the stock. But if they're taking it here, there's still, I should say, an overweight on the stock, even though they're making some of these negative commentary.
But they're saying there could be a less successful Christmas holiday promotion compared with the pumpkin spice latte. Pumpkin spice latte has become huge, obviously. Maybe--
JULIE HYMAN: That thing, yeah.
JULIE HYMAN: Yeah, I mean--
JOSH LIPTON: People love pumpkin spice.
JULIE HYMAN: Pumpkin spice coffee, oh. No, thank you.
JOSH LIPTON: I was going to say, I was going to say what Bourdain once said--
JULIE HYMAN: Everybody-- everybody's got their thing, right? And for a lot of people, the thing is the pumpkin spice latte. I actually like the Christmas blend or the holiday-- whatever they call it. I like the holiday blend at Starbucks. Not that I'm a huge Starbucks consumer, but you know?
JOSH LIPTON: I go every morning, but I stay very simple.
JULIE HYMAN: You go every morning to Starbucks?
JOSH LIPTON: Every single morning.
JULIE HYMAN: I didn't know that. Well, you're a Black coffee guy.
JOSH LIPTON: Well, there's a point, at which you hit yourself up with a double espresso every morning, at some point, you just need it. It's not even really having an impact anymore. Yeah.
JULIE HYMAN: Wait. Wait. One more thing, are you like a Pike's Place guy? Do you care-- you just order a coffee. You don't even request what you're getting.
JOSH LIPTON: It doesn't matter to me. Just--
JULIE HYMAN: You're getting the Pike Place--
JOSH LIPTON: Two shots over ice. I'm not that sophisticated. I just need the quick hit. I was-- to your point, though, about the Starbucks, what's impressive is that the stock has done a whole bunch of nothing this year. I mean, at this point after this route, you are basically dead flat. You're down 1%.
JULIE HYMAN: Yeah. So I don't know what the catalyst is for coming back.
JOSH LIPTON: Well, same.