Starbucks Shares Fall 7% as US Gas Prices Climb 32%
Starbucks shares have dropped about 7% in the past month as U.S. gas prices climbed 32% from $2.98 to $3.90 per gallon since late February, curbing fast food visits. Closure of the Strait of Hormuz cut about 20% of global oil supply and pushed crude past $100 per barrel.
1. Gas Price Surge and Causes
Since late February, U.S. average pump prices jumped from $2.98 to $3.90 per gallon, marking a 32% spike. The near-total closure of the Strait of Hormuz removed roughly 20% of global oil supply, sending crude above $100 per barrel.
2. Consumer Spending Pressure
Weekly restaurant industry sales fell throughout March as higher fuel costs ate into disposable income. Low-income consumers, who allocate a larger share of their budgets to gas, have cut back on fast food visits.
3. Starbucks Stock Impact
Starbucks shares have declined about 7% over the past month amid consumer pullback on spending. The drop aligns with similar declines at major peers struggling with lower foot traffic.
4. Industry Performance Comparison
McDonald’s fell roughly 7%, Wendy’s slid 10% and Chipotle dropped 15% in the same period. Restaurant Brands bucked the trend with a 5% gain, helped by a viral marketing push for its revamped Whopper.