Starbucks stock falls as earnings --- weighed down by China sales --- miss estimates

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Starbucks' first-quarter results failed to meet Wall Street estimates because of weakness in China, and the company’s stock fell sharply in extended trading Thursday.

Despite posting record first-quarter revenue, Starbucks Corp. saw its stock fall in extended trading Thursday as it failed to meet Wall Street estimates because of weakness in China.

In the U.S. and North America, same-store sales rose 10% year over year, mostly driven by price increases — a 9% rise in average ticket, or the amount spent by each customer who visits, while comparable transactions increased 1%. Net revenues for the North America segment increased 14% year over year to $6.6 billion, contributing to what the company said was record revenue of $8.71 billion, which fell shy of analysts’ expectation of $8.79 billion.

Starbucks stores in the United States and China made up 61% of the company’s worldwide portfolio in the first quarter, with 15,952 stores in the U.S. and 6,090 stores in China. Starbucks ended the quarter with 36,170 stores after opening 459 net new stores in the quarter, according to its earnings report.

 

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No, thanks. My home coffee ☕ costs me $0.05 cents per drink.

Price hikes at starbucks has been above the inflation

JonChevreau Probably because they treat their customers like children. How a good company has fallen so far is incredible. StarbucksCanada

This is how bad things are at Starbucks: with every drink now they ask you 'hot' or 'cold'. Really? Cold drink at 20F? Trying to save on electricity costs any way they can.

It’s almost like charging $5.50 for a cold brew was a bad idea

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