Starbucks faces union strikes and backlash over disrespectful incident, as it struggles to stay competitive amid rising rivals and changing consumer habits.
Starbucks has reported a 4% increase in U.S. same-store sales for the quarter ending December 28, surpassing analyst expectations. The company highlights gains in customer traffic and spending, driven partly by viral holiday cups. Revenues have risen, but profits have declined due to increased expenses and investments in staffing.
Starbucks plans to open up to 575 new U.S. stores by 2028, focusing on smaller, inviting formats and technological upgrades to boost customer engagement. Despite growth efforts, it faces increased competition and declining market share, with some investors questioning its long-term strategy.