With the consumer now being strapped, the luxury of having a Starbucks coffee each day could be one of the first things to go. http://www.marketwatch.com/story/starbucks-shares-slump-toward-8th-straight-loss-after-analyst-downgrade-2017-06-14
whew... how bout that p/e? Good example too of a stock people might invest in emotionally versus reality.
P/E of 25 to 29 depending on whether forward P/E or Trailing P/E, respectively. Yep. Expensive, not cheap.
Yep: here in the UK someone calculated that a coffee a day for each 5 work days a month would equal more or less their 'travel to work' fare for that same month ... so the Starbucks coffee was the first to go !
It can get expensive and unjustifiable when things get tight. Yep, I agree.
I agree that people will cut back on this when budgets get tight. This is also a classic example of free enterprise: Starbucks makes a lot of money on coffee so other competitors up their game, like 7-Eleven and McDonalds. Many people will switch to cheaper alternatives, sometimes tight budget or not.