Starbucks Loses its Sizzle After a Weak Earnings Report
Shares of Starbucks took a dive after delivering weaker-than-expected sales results for the latest quarter. Jason Moser, Analyst at Motley Fool, joined us to break down the numbers.
Global same-store sales rose 2%, below estimates of 3%. Despite raking in over $6 billion in a quarter for the first time, investors were disappointed that the company fell short of the $6.18 billion projected. Moser thinks it is a bit of an overreaction for investors to believe the company is a business in decline. The analyst added that China will continue to be a major growth opportunity for Starbucks. Same-store sales in China grew 6%, while revenue in Q1 grew 30%.
Starbucks added 1.4 million rewards members in the quarter, bringing the total to 14.2 million. With 75 million unique visitors, Moser questions Starbucks' ability to capitalize on the program. He also noted that Kevin Johnson needs to step it up before Wall Street loses confidence in his ability to lead the company.
David Wright, President and owner of Wright Financial Group, shares his thoughts on why the Federal Reserve seems hesitant to cut rates, and why regional bank stocks could help move the needle.
Disney and Fortnite-maker Epic Games will collab on making new video games with Disney characters. Hopefully it will be more than Mickey Mouse hitting the Griddy.
Hershey is cautioning on its 2024 profit growth as the company contends with rising cocoa costs, leading to increased prices for chocolate. The company anticipates its full-year earnings per share being relatively flat, partly due to higher cocoa and sugar costs.
Prince Harry has reached an out-of-court settlement with a tabloid newspaper publisher that invaded his privacy with phone hacking and other illegal snooping. Attorney David Sherborne said that Mirror Group Newspapers had agreed to pay Harry’ “substantial” costs and damages.
An attorney representing passengers of an Alaska Airlines flight that lost a door plug in midair says a “whistling sound” was heard on a previous flight of the same Boeing 737 Max 9.
What do Arnold Schwarzenegger, Aubrey Plaza, and Tom Brady all have in common? You'll see them on Super Bowl Sunday, but not on the field. If you only watch the Super Bowl for the ads, here's a sneak peek.
