Why Wall St. Hates Starbucks (SBUX)

By 24/7 Wall St.

Starbucks (NASDAQ: SBUX) has been a disappointment recently. Same-store sales in the US slowed over the last couple of quarters. The company pushed down its guidance. Founder Howard Schultz kicked out his CEO and took over
In late 2006, Starbucks traded over $40. It is well below that now, under $18 on most days.
Right as the stock peaked, the then-CEO Jim Donald made the audacious statement that the company would eventually have 40,000 stores. On the day he said that Starbucks had 12,440 stores. Looking back, it is almost certain the his prediction had no chance of becoming a reality. But, the $40 share price had gone to his head. He had become delirious with success.

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