Starbucks (SBUX) stock plummeted in its worst intra-day move since 2020 following disappointing second quarter guidance that fell short of Wall Street’s expectations.
Starbucks CFO Rachel Ruggeri tells Seana Smith and Brooke DiPalma that the beverage giant "didn’t respond fast enough" to the decline in sales as the number of occasional costumers dropped. She points to upcoming digital initiatives, like the rewards program and in-app offers, that will seek to engage more customers and drive sales.
As the stock continues to drop, Ruggeri says Starbucks is not considering price cuts, and is instead focused on "investing" in its rewards program. "When we bring customers into the program, we know that their lifetime value increases. They spend more money and they come more frequently. So we see that as our biggest opportunity," she says.
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