Starbucks Cuts Sales Forecast Amid Boycotts Over Middle East Conflict

CEO Laxman Narasimhan cites 'misperceptions' about the company's position on the Israel-Hamas conflict as a key factor impacting sales.

Starbucks has cut its yearly sales forecasts and missed market expectations due to boycotts in the US and Middle East, linked to the Israel-Hamas conflict.
CEO Laxman Narasimhan cited 'misperceptions about [Starbucks'] position' on the Middle East conflict as a reason for a drop in traffic at its US stores.
Starbucks faced criticism and boycotts after a pro-Palestine statement was posted on Instagram by Starbucks’ Workers United, the national union for the company’s baristas.
The company took legal action against the union over the post, which led to further boycotts from customers displeased with the lawsuit.
Starbucks is not the only brand to have faced a customer backlash over issues related to the Middle East conflict, with McDonald's and Bud Light also experiencing similar issues.