WS #14695
Consumer discretionary stocks are facing renewed pressure as major brands signal weakening demand. Starbucks is closing approximately 250 underperforming US locations and taking $300 million in restructuring charges, while simultaneously slashing its expansion guidance. This retreat, coupled with weaker-than-expected results from Darden Restaurants, suggests that consumers are pulling back on discretionary spending, likely exacerbated by the rising cost of living and energy prices driven by the current geopolitical environment.
Consumer Discretionary Retreat
Consumer discretionary stocks are facing renewed pressure as major brands signal weakening demand. Starbucks is closing approximately 250 underperforming US locations and taking $300 million in restructuring charges, while simultaneously slashing its expansion guidance. This retreat, coupled with weaker-than-expected results from Darden Restaurants, suggests that consumers are pulling back on discretionary spending, likely exacerbated by the rising cost of living and energy prices driven by the current geopolitical environment.