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Starbucks is bearish about Britain's prospects because of concerns about Brexit and terrorist attacks

Published: 2024-11-17 Author: World Gafei
Last Updated: 2024/11/17, Coffee chain giant Starbucks Corp. After cutting its earnings forecast earlier this year, it recently said that concerns about Brexit and terrorist attacks could hurt its UK earnings. Due to continued economic and geopolitical headwinds, including slow economic growth, the impact of Brexit, and safety concerns that undermine consumer confidence, the company is confident about its prospects for 2017.

Starbucks Corp., the coffee chain giant After downgrading its earnings forecast earlier this year, it has recently said that concerns about Brexit and terrorist attacks could hurt its UK earnings.

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"The company remains cautious about its outlook for 2017 due to persistent economic and geopolitical headwinds, including slow economic growth, the impact of Brexit, and security concerns undermining consumer confidence," Starbucks said in a filing with the UK Companies House.

Starbucks 'profits in Britain plunged 74 percent to 6.7 million pounds ($8.4 million) in the year to October 2, the company said in the filing. It also said foot traffic "dropped significantly" across stores nationwide.

The world's largest coffee company, based in Seattle, Washington, has been trying to improve sales with new technology and a loyalty program to lock in customers. Sales in the UK have been hampered by the Brexit vote and the recent terrorist attacks across Europe.

Starbucks last year cited the Paris terror attacks as a reason for its performance in Europe. In the U.S., companies are also under pressure because their mobile-order-ahead mobile apps are causing customer congestion at the food counter.

Starbucks said its UK business was "investing heavily" in low-calorie food options including fresh fruit, salads and meatloaf. The company also remodeled its stores to "reflect changes in customer demand," it said.

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