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.
EV charging solution eDRV recently announced it closed a seed funding round. Bhaskar Deol, co-founder and CEO of eDRV, joined Cheddar News to explain how his company helps to launch and manage charging networks.
The Week's Top Stories is a guided tour through the biggest market stories of the week, from winning stocks to brutal dips to the facts and forecasts generating buzz on Wall Street.
Mass layoffs continue to still be announced so far this year. Julie Bauke, chief career strategist with The Bauke Group, joined Cheddar News to provide tips on how to look for your next job after being laid off.
A report from financial services website Credit Summit found that 90 percent of Americans say they enjoy receiving gift cards but a staggering $21 billion locked inside them have gone unspent.
