ABC News: Starbucks sees sales slump

UC economist says it would be more concerning if other companies also reported revenue declines

Sales at Starbucks are slumping, ABC News reported, which has some people worried about broader consumer spending.

Michael Jones, PhD
Assoc Professor
Academic Director, MAECON
LCB-Economics

Michael Jones, PhD, assistant professor of economics

In an earnings report, the coffee chain reported an approximately 2% decline in revenue over the first three months of the year. Many economic analysts view Starbucks as a bellwether for consumer spending, leading to questions about whether the reduced consumer spending is a problem specific to the company or to the economy as a whole.

Michael Jones, PhD, assistant professor of economics in the University of Cincinnati's Carl H. Lindner College of Business, told ABC News there should be concern if more companies start reporting similar declines to revenue.

“When you see it happening at companies outside of Starbucks, that’s when it becomes a broader worry that you’re concerned about,” Jones said.

See more from ABC News.

Featured image at top: Starbucks logo and coffee beans. Photo/engin akyurt via Unsplash

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