SBUX: Long slow Starbucks decline, McDonalds competes

Long slow Starbucks decline, McDonalds competes

Starbucks' 2% drop in same store sales growth and similar decreases in operating margin cause investors to lose confidence in what some say is an "overvalued" stock. Lower luxury consumption levels hits hard on the "affordable luxury" coffee chain, especially after McDonalds launches its own premium coffee in March and steals share from an unresponsive Starbucks. Rising dairy prices take a chunk out of profits, too.

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