SBUX - Starbucks Might Take Time To Recover After A Decaf Quarter | Benzinga
The latest quarter report from the coffee giant Starbucks Corporation (NASDAQ: SBUX) was bitter. Moreover, after missing top and bottom-line estimates, Starbucks also lowered its full year revenue outlook. CEO Laxman Narasimhan spoke of a negative impact that misperceptions of McDonald’s positioning had on its business both in the Middle East and in the US. McDonalds Corporation (NYSE: MCD) also faced the same problem as the burger giant also reported its results were harmed by the Middle East conflict due to such misperceptions. McDonald’s also ended 2023 by launching its coffee spinoff, CosMc's, a small restaurant with a DNA of McDonald's but that serves customizable drinks along with sweet and savory treats. McDonald’s reported its sales still grew but they were also below Wall Street’s expectations.
First Fiscal Quarter Results Were Below Wall Street Estimates
For the first fiscal quarter that ended on January 1st, revenue grew 8% YoY to $9.4 billion and came short of analyst estimates that expected a 10.2% rise to $9.6 billion. Adjusted earnings per share rose 20% to $0.90, but also came short of the estimated $0.93. Disappointing US same-store sales rose 5% with foot traffic rising only 1%, and check size going up 4%, with all three figures coming below estimates.
China Results Were A Far Cry From Estimates
Same-store sales in China rose only 10%, below Wall Street’s 16% estimate and although foot traffic ...