Starbucks downgraded to Market Perform from Outperform at William Blair

William Blair downgraded Starbucks to Market Perform from Outperform following last night’s earnings report. After healthy demand over the past three years, the “tide has turned quickly,” with Starbucks posting the weakest traffic performance outside the pandemic or Great Recession, the anlayst tells investors in a research note. The firm believes the company’s China business now “looks more fragile,” with comparable sales down 11%, and notes that even Starbucks Rewards members “took a rare dip.”