It was a happy holiday at Starbucks, but the company's sales momentum could start to slow due to the coronavirus outbreak in China.
New drinks like the Pumpkin Cream Cold Brew were a hit with customers, helping the Seattle-based coffee giant beat Wall Street's forecasts in the October-December period. Starbucks reaffirmed its 2020 profit guidance for now, but said it has already closed more than half of its stores in China.
Starbucks reported Tuesday that its earnings rose 16% to $886 million in its fiscal first quarter. Earnings, adjusted for non-recurring items like restructuring charges, were 79 cents per share. That beat Wall Street's forecast of 76 cents.
Starbucks said same-store sales — or sales at stores open at least 13 months — jumped 5% worldwide in the October-December period, ahead of analysts' forecast of 4.4%. Revenue was up 7% to $7.1 billion, in line with analysts' forecasts.
Starbucks said 1.4 million U.S. customers joined its Starbucks Rewards loyalty program during the quarter. The company said demand for mobile ordering and payment is growing in the U.S.
UPS recently announced it would equip delivery trucks with air conditioning. Dr. Douglas Casa, CEO of Korey Stringer Institute at the University of Connecticut, spoke with Cheddar News on the dangers of heat stroke and how workers can keep themselves safe from extreme weather.
The push for clean energy is igniting an interest in electric vehicles but charging EVs continues to be a concern for consumers looking to save. Brian Moody, executive editor with Autotrader, joined Cheddar News to discuss how people can make home-charging more affordable.
Gannett has filed a civil lawsuit against Google and its parent company Alphabet, claiming that they unlawfully hold monopolies in the advertising technology tools that publishers and advertisers use to buy and sell online ad space.
Apple, the tech giant, is trying to trademark images of apples, the fruit. The company has been pursuing the trademark since 2017, and its latest battleground is Switzerland, where its appealing a partial trademark that would only cover black-and-white depictions of Granny Smith apples.
