"Some investors said that Starbucks Corp. ( NASDAQ: SBUX) earnings were a sign of a turnaround. Yet, the stock fell 1.35% to $93.88 per share the day after those results were announced. The share price was down again before the market opened today. A 4% increase in comparable store sales is not like the good old days. Revenue in the most recent quarter rose 6% to $9.9 billion, and per-share earnings fell 19% to $0.56."
"The stock is down 14% in the past year, while the S&P 500 is 14% higher. In the past five years, it is down 3%, compared with the S&P 500's 87% gain. Investors remember when Starbucks was a growth company stock. That was as recently as 2021, when the stock price was $120. It is $94 today and going nowhere."
Starbucks posted a 4% comparable-store sales increase, revenue up 6% to $9.9 billion, and per-share earnings down 19% to $0.56. The stock declined after the results and is down 14% over the past year while the S&P 500 rose 14%; over five years the stock is down 3% versus the S&P 500's 87% gain. CEO Brian Niccol stated the 'Back to Starbucks' strategy is working and ahead of schedule. Management layers were trimmed, store teams adopted more consistent clothing, and anecdotal service improvements and customer-friendly changes are occurring. More proof is needed to show accelerating, sustainable growth.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]