The S&P 500 futures are rising, but Starbucks' stock is struggling due to a 50% U.S. tariff on Brazilian coffee, the leading global producer. Analysts predict a 3.5% price increase yearly, impacting Starbucks' earnings negatively. Year to date, Starbucks is down 1.15%, with an 8% decline in five trading sessions. A 2% fall in same-store sales highlights the adverse effects of coffee price rises. While U.S. consumers face higher costs, Brazil's economy remains stable with projected growth, leading to lower global coffee prices benefiting other markets.
Starbucks faces a potential 3.5% annual cost increase due to a 50% U.S. tariff on Brazilian coffee, affecting earnings and leading to rising prices for consumers.
Despite a risk-on attitude in the market, Starbucks' stock underperforms, showing a YTD decline amidst rising coffee prices and a recent drop in same-store sales.
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