"Starbucks' Missed Expectations Prompt Reevaluation Amid Boycotts"

Starbucks has cut its yearly sales forecasts and missed market expectations due to boycotts in the US and Middle East, with a "significant impact on traffic and sales" in the Middle East attributed to the Israel-Hamas conflict. The company's CEO cited boycotts and vandalism as contributing factors, leading to a slowdown in US store traffic. While recording record revenue in its first 2024 fiscal quarter, Starbucks lowered its sales outlook for the year, with revenue growth now expected to be between 7% and 10% instead of the previously forecasted 10% to 12%. The company's shares rose 3% following the announcement, but were 11% lower compared to a year ago. Other brands, including McDonald's and Bud Light, have also faced customer backlash related to the Middle East conflict.