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.
The Republican-controlled Federal Trade Commission is abandoning a Biden-era effort to block Microsoft’s purchase of “Call of Duty” video game maker Activision Blizzard.
The Justice Department has reached a deal with Boeing that will allow the company to avoid criminal prosecution for allegedly misleading U.S. regulators about the 737 Max jetliner before two of the planes crashed and killed 346 people.
After a bumpy ride, the ride-hailing app is back in the good graces of investors. Plus: OpenAI, Google, Apple, Target, Moody's, Paramount, and Golden Dome.
Smoke that filled the cabin of a Delta flight as it took off from the Atlanta airport in February was so thick the led flight attendant had trouble seeing past the first row of passengers and the pilots donned oxygen masks as a precaution.
Arjan Stephens, President of Nature's Path, discusses the company's origin, how it has evolved today and the interesting product that came from his wedding!
