Starbucks Faces Backlash in South Korea Over Controversial Campaign
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 22 2026
0mins
Source: seekingalpha
- Intense Market Reaction: Starbucks Korea faces significant backlash due to its 'Tank Day' marketing campaign coinciding with the anniversary of the 1980 Gwangju pro-democracy protests, prompting the Interior Minister to announce a halt on partnerships with companies that trivialize the nation's democratic history, indicating severe threats to the brand's image.
- Executive Changes: The CEO of Starbucks Korea was reportedly fired amid public outcry, reflecting the company's urgency in crisis management and commitment to brand reputation, which may impact future market strategies and management stability.
- Market Position at Risk: With 2,115 stores in South Korea, trailing only the U.S. and China, this incident could undermine Starbucks' leadership position in the Korean market, especially as Seoul has more locations than New York City and London combined.
- Brand Licensing Model: After exiting its joint venture with E-Mart in July 2021, Starbucks operates under a licensing agreement, and while its brand influence remains strong, this incident could affect its brand value and consumer trust in South Korea.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy SBUX?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on SBUX
Wall Street analysts forecast SBUX stock price to fall
21 Analyst Rating
12 Buy
7 Hold
2 Sell
Moderate Buy
Current: 100.750
Low
59.00
Averages
96.12
High
115.00
Current: 100.750
Low
59.00
Averages
96.12
High
115.00
About SBUX
Starbucks Corporations is a roaster, marketer, and retailer of specialty coffee globally. Its North America segment includes the United States and Canada. Its International segment includes China, Japan, Asia Pacific, Europe, Middle East and Africa, Latin America, and the Caribbean. Its North America and International segments include both Company-operated and licensed stores. The Channel Development segment includes roasted whole bean and ground coffees, Starbucks-branded single-serve products, a variety of ready-to-drink beverages, such as Frappuccino and Starbucks Doubleshot, foodservice products, and other branded products sold outside the Company-operated and licensed stores. A large portion of its Channel Development business operates under a licensed model of the Global Coffee Alliance with Nestle, while its global ready-to-drink businesses operate under collaborative relationships with PepsiCo, Inc., Tingyi-Ashi Beverages Holding Co., Ltd., Arla Foods amba, Nestle, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Starbucks Sees Significant Afternoon Traffic Boost
- Strategic Daypart Growth: Starbucks (SBUX) reports a significant rise in customer traffic between 2:00 p.m. and early evening in U.S. stores, indicating a successful transformation of a previously slow daypart into a meaningful growth driver.
- CEO's Turnaround Plan Validation: This traffic increase is seen as early proof of CEO Brian Niccol's turnaround agenda, which aims to balance demand throughout the day and reduce reliance on the morning rush crowd.
- New Beverages Driving Traffic: Starbucks highlights its Refreshers platform and new energy-style beverages made with green coffee extract as key catalysts for pulling customers back into stores later in the day, with customizable caffeine levels providing more afternoon options.
- Menu Updates Enhance Spending: The afternoon menu shift includes an expanded lineup of bakery items and protein-forward snacks designed to boost average checks post-lunch, with updated in-store and digital menu boards spotlighting afternoon-friendly choices to enhance customer experience.
See More
Stocks Edge Up as Snowflake Surges 35% on Strong Earnings
- Market Dynamics: Stocks edged higher on Thursday following a 60-day ceasefire agreement between the U.S. and Iran, which initiated negotiations over Iran's nuclear program, while the personal consumption expenditures price index rose 0.4% month-over-month, slightly below the expected 0.5%, alleviating inflation concerns.
- Snowflake's Strong Performance: Data analytics firm Snowflake saw its shares surge 35% after a robust quarterly report, with CEO Sridhar Ramaswamy successfully pivoting the company towards an AI-focused business model, and a $6 billion commitment to Amazon further bolstered market confidence.
- Starbucks Recovery Signs: Starbucks is witnessing improved afternoon traffic, particularly between 3 p.m. and 5 p.m., which management identifies as crucial for enhancing profitability; Jim Cramer recommends buying Starbucks shares, projecting a target price of $120, indicating a potential upside of about 17%.
- Quick Market Recap: Stocks mentioned in Thursday's rapid-fire segment included CVS, Eli Lilly, and Marvell, with Jim Cramer's charitable trust holding positions in Amazon and Starbucks, providing trade alerts before executing trades.
See More
Analysis of XLY ETF's 52-Week Price Fluctuations
- Price Range Analysis: The XLY ETF's 52-week low is $103.855 per share, with a high of $125.01, and the latest trade at $121.49 indicates relative stability in the current market, potentially attracting investor interest.
- Technical Analysis Tool: Comparing the latest share price to the 200-day moving average can provide valuable insights for investors, helping them assess market trends and identify potential buying opportunities to optimize investment decisions.
- ETF Trading Mechanism: Exchange-traded funds (ETFs) trade similarly to stocks, where investors are buying and selling 'units' that can be created or destroyed based on investor demand, offering flexibility in adapting to market fluctuations.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding for ETFs highlights those experiencing notable inflows (new units created) or outflows (old units destroyed), as these liquidity changes can impact the performance of individual stocks within the ETF, thereby affecting the overall investment portfolio.
See More
Starbucks Sees Growth in Afternoon Traffic as Part of Turnaround Strategy
- Afternoon Traffic Growth: Starbucks reports a significant increase in customer visits after 2 PM, particularly between 3 PM and 5 PM, which injects confidence into the company's turnaround strategy as it seeks to drive consistent traffic beyond the morning rush.
- Sales Surge: Data indicates that sales after 11 AM are projected to reach $11 billion in fiscal year 2025, showcasing the untapped potential of the afternoon sales window for the company.
- Innovation Driving Sales: The Refreshers beverage line has become Starbucks' second-best-selling category after espresso, contributing to afternoon sales growth and highlighting the company's success in beverage innovation.
- Intensifying Market Competition: With competitors like Dutch Bros and Dunkin' ramping up their afternoon marketing efforts, Starbucks' strategy for this time frame becomes crucial, as TD Cowen analysts expect new menu items and digital boards to further enhance traffic growth.
See More
Starbucks Sees Significant Growth in Afternoon Traffic
- Afternoon Traffic Surge: Internal data from February 15 to May 16 indicates that Starbucks is experiencing rapid growth in customer visits after 2 p.m., particularly between 3 p.m. and 5 p.m., highlighting the company's potential to attract repeat customers.
- Strong Beverage Sales: The Refreshers platform has become Starbucks' second-best-selling beverage category after espresso, driving sales growth during the afternoon and expected to enhance customer loyalty further.
- Strategic Turnaround Success: CEO Brian Niccol emphasizes that the afternoon period represents a key growth opportunity in the company's turnaround strategy, as Starbucks aims for more consistent traffic beyond the morning rush, with recent quarterly earnings exceeding expectations and shares up 21% year-to-date.
- Intensifying Competition: With rivals like Dutch Bros and Dunkin' launching new beverages for the afternoon window, TD Cowen analysts suggest that Starbucks must leverage menu innovation and digital marketing to attract more customers and maintain top-of-mind awareness during coffee breaks.
See More
Jim Cramer Recommends Four Stocks for New Investors
- Diversification Strategy: Jim Cramer emphasized the need for diversification even as artificial intelligence dominates the market, ensuring long-term stability in investment portfolios to mitigate risks associated with single-theme investments.
- Stock Recommendations: Cramer recommended four stocks for new members to buy, including Alphabet, Amazon, Apple, and Nvidia, all of which demonstrate strong growth potential, particularly in their AI-related businesses.
- Market Outlook: Despite challenges faced by Meta and Microsoft, Cramer remains cautiously optimistic about their future performance, suggesting that these companies could achieve breakthroughs in the evolving AI landscape.
- Emerging Investment Opportunities: Stocks like Arm Holdings and Broadcom are showing strong performance, particularly in the data center and AI chip sectors, reflecting robust market demand for related technologies, making them worth watching for long-term growth potential.
See More
Starbucks Sees Significant Afternoon Traffic Boost
- Strategic Daypart Growth: Starbucks (SBUX) reports a significant rise in customer traffic between 2:00 p.m. and early evening in U.S. stores, indicating a successful transformation of a previously slow daypart into a meaningful growth driver.
- CEO's Turnaround Plan Validation: This traffic increase is seen as early proof of CEO Brian Niccol's turnaround agenda, which aims to balance demand throughout the day and reduce reliance on the morning rush crowd.
- New Beverages Driving Traffic: Starbucks highlights its Refreshers platform and new energy-style beverages made with green coffee extract as key catalysts for pulling customers back into stores later in the day, with customizable caffeine levels providing more afternoon options.
- Menu Updates Enhance Spending: The afternoon menu shift includes an expanded lineup of bakery items and protein-forward snacks designed to boost average checks post-lunch, with updated in-store and digital menu boards spotlighting afternoon-friendly choices to enhance customer experience.
See More
Stocks Edge Up as Snowflake Surges 35% on Strong Earnings
- Market Dynamics: Stocks edged higher on Thursday following a 60-day ceasefire agreement between the U.S. and Iran, which initiated negotiations over Iran's nuclear program, while the personal consumption expenditures price index rose 0.4% month-over-month, slightly below the expected 0.5%, alleviating inflation concerns.
- Snowflake's Strong Performance: Data analytics firm Snowflake saw its shares surge 35% after a robust quarterly report, with CEO Sridhar Ramaswamy successfully pivoting the company towards an AI-focused business model, and a $6 billion commitment to Amazon further bolstered market confidence.
- Starbucks Recovery Signs: Starbucks is witnessing improved afternoon traffic, particularly between 3 p.m. and 5 p.m., which management identifies as crucial for enhancing profitability; Jim Cramer recommends buying Starbucks shares, projecting a target price of $120, indicating a potential upside of about 17%.
- Quick Market Recap: Stocks mentioned in Thursday's rapid-fire segment included CVS, Eli Lilly, and Marvell, with Jim Cramer's charitable trust holding positions in Amazon and Starbucks, providing trade alerts before executing trades.
See More
Analysis of XLY ETF's 52-Week Price Fluctuations
- Price Range Analysis: The XLY ETF's 52-week low is $103.855 per share, with a high of $125.01, and the latest trade at $121.49 indicates relative stability in the current market, potentially attracting investor interest.
- Technical Analysis Tool: Comparing the latest share price to the 200-day moving average can provide valuable insights for investors, helping them assess market trends and identify potential buying opportunities to optimize investment decisions.
- ETF Trading Mechanism: Exchange-traded funds (ETFs) trade similarly to stocks, where investors are buying and selling 'units' that can be created or destroyed based on investor demand, offering flexibility in adapting to market fluctuations.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding for ETFs highlights those experiencing notable inflows (new units created) or outflows (old units destroyed), as these liquidity changes can impact the performance of individual stocks within the ETF, thereby affecting the overall investment portfolio.
See More
Starbucks Sees Growth in Afternoon Traffic as Part of Turnaround Strategy
- Afternoon Traffic Growth: Starbucks reports a significant increase in customer visits after 2 PM, particularly between 3 PM and 5 PM, which injects confidence into the company's turnaround strategy as it seeks to drive consistent traffic beyond the morning rush.
- Sales Surge: Data indicates that sales after 11 AM are projected to reach $11 billion in fiscal year 2025, showcasing the untapped potential of the afternoon sales window for the company.
- Innovation Driving Sales: The Refreshers beverage line has become Starbucks' second-best-selling category after espresso, contributing to afternoon sales growth and highlighting the company's success in beverage innovation.
- Intensifying Market Competition: With competitors like Dutch Bros and Dunkin' ramping up their afternoon marketing efforts, Starbucks' strategy for this time frame becomes crucial, as TD Cowen analysts expect new menu items and digital boards to further enhance traffic growth.
See More
Starbucks Sees Significant Growth in Afternoon Traffic
- Afternoon Traffic Surge: Internal data from February 15 to May 16 indicates that Starbucks is experiencing rapid growth in customer visits after 2 p.m., particularly between 3 p.m. and 5 p.m., highlighting the company's potential to attract repeat customers.
- Strong Beverage Sales: The Refreshers platform has become Starbucks' second-best-selling beverage category after espresso, driving sales growth during the afternoon and expected to enhance customer loyalty further.
- Strategic Turnaround Success: CEO Brian Niccol emphasizes that the afternoon period represents a key growth opportunity in the company's turnaround strategy, as Starbucks aims for more consistent traffic beyond the morning rush, with recent quarterly earnings exceeding expectations and shares up 21% year-to-date.
- Intensifying Competition: With rivals like Dutch Bros and Dunkin' launching new beverages for the afternoon window, TD Cowen analysts suggest that Starbucks must leverage menu innovation and digital marketing to attract more customers and maintain top-of-mind awareness during coffee breaks.
See More
Jim Cramer Recommends Four Stocks for New Investors
- Diversification Strategy: Jim Cramer emphasized the need for diversification even as artificial intelligence dominates the market, ensuring long-term stability in investment portfolios to mitigate risks associated with single-theme investments.
- Stock Recommendations: Cramer recommended four stocks for new members to buy, including Alphabet, Amazon, Apple, and Nvidia, all of which demonstrate strong growth potential, particularly in their AI-related businesses.
- Market Outlook: Despite challenges faced by Meta and Microsoft, Cramer remains cautiously optimistic about their future performance, suggesting that these companies could achieve breakthroughs in the evolving AI landscape.
- Emerging Investment Opportunities: Stocks like Arm Holdings and Broadcom are showing strong performance, particularly in the data center and AI chip sectors, reflecting robust market demand for related technologies, making them worth watching for long-term growth potential.
See More
