Why Starbucks shares are underperforming today

Starbucks (NASDAQ: SBUX) shares fell as much as 2.5% Tuesday despite the S&P 500 being down just 0.1%.

Weakness in shares is a result of comments by the company’s CEO, Laxman Narasimhan, who was speaking at the Morgan Stanley Global Consumer and Retail Conference.

Narasimhan noted that China is normalizing at a pace approximately half of what might be expected. He also characterized the recovery in China as "choppy."

The stock is now on its way to record the 12th consecutive lower close as sales data suggests a material slowing in its business.

Starbucks shares are down 4.1% year-to-date while the S&P 500 is up 19%.

By Senad Karaahmetovic

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