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.
Collectables brand Funko Pop! is struggling to off load inventory and now plans to eliminate approximately $30 million to $36 million dollars worth of product.
Public relations expert and successful TikToker Robyn DelMonte joined Cheddar News to provide some insight into effective strategies for building a brand through social media.
Danielle DiMartino Booth, CEO and chief strategist of Quill Intelligence, joined Cheddar News to discuss the market that is still digesting comments from the Federal Reserve about its monetary policy.
A study by research company Euromonitor International found that the number of available banking machines in the U.S. has dropped by more than 18,000 since 2019.
