Starbucks Corp. (NASDAQ:SBUX) stock was down 0.92% in early afternoon trading on April 19. Shares have climbed 3.6% in 2018 thus far in spite of quarterly earnings that showed a disappointing holiday sales season in North America. However, Starbucks’ expansion into Asia has proven fruitful.
The company was hit with a controversy in North America that has injected the company into the daily news cycle.
On April 12 a viral video sparked backlash against Starbucks which led to confrontations with protestors in some of its stores and even calls for a boycott. On April 17 Starbucks announced that it would close more than 8,000 U.S. stores for several hours in May in order to conduct racial-bias training for its workforce of more than 175,000 employees. The training will reportedly take place on May 29. In the meantime, the company has gone on a public relations blitz and issued a formal apology, while also dismissing the manager involved in the incident.
Starbucks is the next in a long line of companies that have found themselves embroiled in the increasingly incendiary political climate. Elements of the far-right online community have also disseminated fake flyers and coupons offering free coffee.
Papa John’s International Inc. was also wracked by political controversy over the past year regarding the former founder and CEO’s opposition to national anthem protests. Shares of Papa John’s have dropped 20% year over year. It has rebounded in 2018, but its struggles illustrate just how combustible a political controversy can be for retailers.
