Shares hit as Starbucks almost near saturation in US

It’s only a joke that there’s a Starbucks on every corner. However, the proliferation of the cafes is hindering the company’s growth, according to a recent report from BMO Capital Markets.

Andrew Strelzik, an analyst at the bank, downgraded Starbucks recently and lowered his price target on the shares, arguing that the abundance of locations in the US means that stores are stealing sales from each other and weighing down the company’s results.

Competitor Dunkin’ Donuts is also suffering from a saturated US fast-food market, and recently lowered its new-store target.