Starbucks is learning a tough lesson after their CEO decided to get involved in the Muslim travel ban controversy.
Rather than accept that the ban was being put into place to protect the country, Starbucks CEO Howard Schultz vowed to hire 10,000 refugees to work at his company’s stores.
If you look at the company’s stock quote, it has dropped from around $59.5 per share to $55.27 per share.
According to market experts, the stock dropped due to Schultz comments about hiring refugees.
Credit Suisse warned that the stock will continue to fall and has clearly been impacted by the CEO’s decision.
“Our work shows a sudden drop in brand sentiment following announcement of the refugee hiring initiative on Jan. 29th, to flattish from a run-rate of ~+80 (on an index of -100 to +100). Net sentiment has since recovered, but has seen significant volatility in recent weeks,” equity analyst Jason West said, according to CNBC.
Starbucks should learn a lesson from this incident. Do not meddle in politics and do not assume the demographics of your customer base. Their customers clearly come from both the left and right.