From Yahoo Finance: 2025-06-09 08:33:00

Starbucks Corp. (NASDAQ:SBUX) will cut prices on select iced beverages in China by an average of 5 yuan, aiming to attract more customers in a competitive market. The price reduction includes dozens of drinks, with some items priced as low as 23 yuan. The move comes as Starbucks faces pressure from local competitors and a slowing economy in China, its second-largest market after the US.

The price cuts are part of Starbucks’ strategy to make its menu more accessible and attract more afternoon customers. Despite earlier claims of not engaging in a price war, the coffee giant introduced smaller drink sizes and issued coupons to broaden its consumer base. Meanwhile, Starbucks explored a potential stake sale in its China business amid increasing competition and challenges from rivals like Luckin Coffee.

Equity research analysts rely on earnings growth and fundamental research for valuation, while traders use technical analysis like moving averages and trend lines for predictive models. For Starbucks, investors can assess long-term prospects using a moving average, which currently sits at $95.71, above the current price of $89.64. Traders believe that when a stock is above its moving average, it is a bullish signal, and when it crosses below, it is a negative signal.

Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable. SBUX shares are trading lower by 0.40% to $89.28 premarket at last check Monday.

Read more: Starbucks Tinkers With Pricing To Hold Ground In China: Report