Starbucks (SBUX) Gets Downgraded

September 27, 2007 by Douglas A. McIntyre

After watching its stock fall for most of the last year, Starbucks (SBUX)  watched Bank of America add insult to injury. It downgraded the stock from neutral to sell. The reason was "the inflection point on slower growth has been reached.."

So, B of A thinks that McDonald’s (MCD) and high milk prices have caught up to the coffee retailer. Perhaps it will never reach its goal to have 40,000 stores.

The same thing happened to McDonald’s five years ago, Wall St. left it for dead. And, perhaps this is what spurred the management to improve the company’s operating performance, marketing, and products.

Starbucks may have gotten its last piece of bad news, enough to get it back on the march.

Douglas A. McIntyre