While the company has been adamant about its neutrality and support for peace rather than either side in the ongoing Israeli onslaught against Gaza and the West Bank, Starbucks (NASDAQ: SBUX) has been hard-pressed by the related boycott.
The damage caused by the pressure became the most evident following the coffee chain’s most recent earnings report as SBUX shares dropped off a cliff, falling from approximately $88 to about $74 within a single day of trading.
Though it is hard to tell whether the boycott has since ended – one has never officially been called, unlike in the case of companies such as McDonald’s (NYSE: MCD), PUMA (ETR: PUM), and Chevron (NYSE: CVX) – the pressure has seemingly let off somewhat.
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SBUX stock manages an impressive 30-day recovery
Indeed, after getting devastated in the stock market since the start of 2024, SBUX is on a definitive path of recovery and has risen 12.31% in the last 30 days, with Starbucks’ price today standing at $81.88.
The recovery has turned particularly decisive in the last full week of trading as it saw the firm rise 5.20% in the stock market.
Nonetheless, despite the most recent trend, Starbucks has to sustain the rise for it to erase its cumulative 2024 decline, which, by the time of publication on June 4, amounts to 12.59%.
Is Starbucks risking a new boycott?
Starbucks has also recently undertaken another effort that has the potential to help in the long-term recovery substantially or to trigger more pressure from dissatisfied consumers.
By June 2024, the coffee giant had allegedly refiled some of its trademarks in Russia in what has been described by Russian-language sources as a preparatory move in case the international situation changes.
It is unclear how well-timed the decision to prepare a return to Russia is, given that the war in Ukraine has recently entered a new phase marked by renewed Russian offensives around Kharkiv and apparent Western approval of the use of its long-range weapons within the internationally recognized borders of the invading country.
Starbucks originally abandoned Russia and sold its business in the country in 2022, in the immediate aftermath of the invasion of Ukraine.
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