Some of you probably invest a little here and there in the stock market. Whether you are investing through a broker, investing in your workplace through payroll deductions, or are part of a Money Market, you might be interested in reading about the recent drop in the Starbucks stock price.
Part of their problem seems to be oversaturation of the local markets. Here, in Big Town, there are at least three Starbucks stores that I can think of off the top of my head. This is a town of 50,000, so maybe they haven't overloaded the market here, but I tend to think they probably have.
I have been to Starbucks a few times. Yes, the beverages are tasty but they are also very expensive. McDonald's and now Sonic both feature premium flavored iced coffees. Sonic also has latte and expresso, and a variety of flavors for both iced and hot coffees. The taste is comparable to Starbucks' offerings, and about half the price.
Part of the problem with Starbucks, other than saturation, is the rising cost of ingredients which tends to increase the price at the consumer end. They continually introduce new flavors and each time it's really a shot in the dark whether those flavors will be a hit. It might serve them better to promote the tried and true flavors, offer specials on them from time to time, and find ways to reduce costs rather than finding new street corners where they can build yet another store.
Still, as far as investing goes, this could also be a good time to buy shares in Starbucks, while the price is down. Once they improve their strategies, the price will likely go up again.
