Starbucks Shares Bounce 4.07% on Friday
Starbucks' stock rose by 4.07% at the close on Friday, settling at $85.57. The week was eventful for the coffee company, marked by a major restructuring operation in Asia and increasing domestic social tensions.
Trading Volume and Annual Performance
The trading volume was established at 15.01 million shares, representing 1.32% of the market capitalization. Over the current year, Starbucks has seen a decline of 10.98%, creating a significant gap with the performance of the S&P 500 index, which has gained 18.33% over the past twelve months. This divergence reflects the challenges faced by the chain globally, contrasting with the dynamics of the overall American market.
Strategic Divestment in China and Labor Tensions
On Monday, Starbucks announced the sale of 60% of its Chinese subsidiary to Boyu Capital for $4 billion, retaining a 40% stake in this new joint venture. This transaction follows a 14% decline in sales in China in 2024 on a like-for-like basis. Boyu Capital, a Hong Kong-based investment firm, will bring its local expertise to accelerate expansion in the region, with a goal of 20,000 cafes eventually. Concurrently, on Wednesday, the Starbucks workers' union voted to authorize a strike, with negotiations remaining at a deadlock. These two issues embody the current challenges of the group: reorienting its international strategy while managing internal social tensions.
Technical Outlook
Technically, the stock is trading above its short-term moving averages, at $83.62 for the MM20 and $83.91 for the MM50, indicating technical support. However, it remains below its 100-day moving average ($87.96), leaving the long-term trend uncertain. The RSI14 index is at 54.16, positioning Starbucks in neutral territory.
