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.
3M has fired prominent company executive Michael Vale due to “inappropriate personal conduct and violation of company policy,” the maker of Post-it notes, industrial coatings and ceramics announced on Monday.
Cheddar News attended the upfront presentation by NBC Universal and broke down how this year's event was different from previous years due to the ongoing writers' strike.
Steve Sosnick, chief strategist with Interactive Brokers, joined Cheddar News to discuss Monday's light trading session ahead of debt ceiling discussions on Tuesday. Sosnick also weighed in on what the Federal Reserve could have in its sight.
General Motors (GM) has submitted a safety recall notification to the National Highway Traffic Safety Administration for 994,763 sports utility vehicles with defective airbag inflators.
Wall Street drifted higher ahead of reports that will show how much a slowing economy is hurting what’s prevented a recession so far: solid spending by U.S. households.
