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.
Stocks closed lower Friday, with the Dow shedding 200 points as stocks fell overall for the second week in a row amid rising Russia-Ukraine tensions. Investors are on edge as U.S. officials including President Joe Biden say they expect a Russian attack on Ukraine in the coming days. Aadil Zaman, Partner at Wall Street Alliance Group, joins Closing Bell to discuss today's close, how consumers are shifting their mindset around COVID-19, earnings season, geopolitical tensions, and more.
Coming off of the latest NFL season, Draftkings has plans for growth and new bettors to join its platform following what it saw as a record year of state legalization of sports betting and Super Bowl action. CEO Jason Robins joined Cheddar News to talk about what in store for the company in 2022, including labor issues leading to the postponement of the MLB's spring training games and the NCAA's March Madness. "There's a lot of really exciting stuff that happens in the first couple of rounds all the way through to the championship game. So typically we've seen incredible activity during March Madness on the betting side," Robins said.
PlayersTV is bringing sports viewers Athletes On Demand, a subscription platform to provide fans with thousands of hours of sports content from their favorite athletes. CEO Angela Bundrant joined Cheddar News to discuss the new rollout. "People can expect to receive content or buy into content on demand that comes from their favorite athletes," said Bundrant, listing star partners like the Phoenix Suns' Chris Paul and New Orleans Pelicans' C.J. McCollum.
The New York Stock Exchange has applied for trademark licenses to launch metaverse-, NFT-, and cryptocurrency-related goods, but denies that it has any immediate plans to launch these virtual products. Adam Hollander, the founder of Hungry Wolves NFT, joins Cheddar News' Closing Bell, where he noted such a plan would be "game-changing."
Walmart beat earnings estimates for the fourth quarter, and despite losses stemming from supply chain costs and COVID-19 employee sick leave, the big box chain was still able to fight inflation as costs rose across the board. What's next for Walmart and other retail giants as inflation continues to run hot?
Arun Sundaram, Senior Equity Analyst at CFRA Research, joins Closing Bell to discuss.
Bamboo-based toilet paper company Cloud Paper raised $5 million in a recent funding round. Its product is a bamboo-based alternative to traditional toilet paper made from trees, and its mission is to end the deforestation caused by traditional paper products. Cloud Paper says the raise will allow it to make significant investments in its supply chain, product development, and hiring. Ryan Fritsch, a co-founder of Cloud Paper, joined Cheddar News' Closing Bell to discuss.
Space tourism company World View plans to launch its first commercial flights in early 2024, with voyages to take off from iconic locations around the world like the Grand Canyon — but seemingly at a flexible price point. Dale Hipsh, president of tourism and exploration at World View, joined Cheddar to discuss what a trip to the stratosphere would look like with his company and its much less expensive take on space travel. "Our technology allows us to be more democratic, to offer more opportunities for people to experience near space, and that overview effect," he said. "So we're really thrilled to be bringing it to market."
