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.
Earlier this week, Peloton announced a change in its C-suite, with new chief executive Barry McCarthy telling the company's remaining staff in an email that he’s, 'here for the comeback story.' Greg Martin, Co-Founder of Rainmaker Securities, joins Cheddar's Closing Bell where he discusses how difficult are Peloton's challenges will be to overcome, especially after the company recently laid off approximately 20% of its staff.
Ben McMillan, Founder and CIO at IDX Digital Assets, joins Cheddar News' Closing Bell, where he discusses the significance of CFTC Chairman Rostin Behnam testifying at Wednesday's Senate Agriculture Committee hearing, and when we could expect to see more regulation in place following the second straight day of congressional hearings on the crypto industry.
Truckers in Canada have blockaded the Ambassador Bridge, the busiest border crossing between Canada and the U.S. protesting a COVID-19 vaccine mandate. Cheddar News spoke with Samir Kapadia, head of trade practice at the Vogal Group, about how this impacts trade between the two countries.
Florists are dreading weekend pickups for this year's Valentine's Day, which lands on a Monday. Christina Stembel, founder and CEO of Farmgirl Flowers joined Cheddar News to discuss the challenges presented by shortages caused by supply chain issues, lack of labor, and climate change and how her company is preparing for this year's holiday. “A Monday delivery is just really hard for small businesses like us," said Stembel. "Larger companies have the scale that some of the large transportation carriers will provide a Sunday pick up for Monday delivery, but for small companies like us, that's not an option. So we have to try to convince people to order early."
Americans placing bets on the Super Bowl is expected to reach a record high due to multiple states legalizing sports gambling. Hana Ostapchuk, the host of Cheddar Bets, joined Baker Machado on Between Bells to discuss the action on the Big Game.
Chipotle posted its quarterly report showing a beat on earnings and revenue. The restaurant chain was able to stay ahead of inflation by raising prices and noted digital sales made up more than 40 percent of overall sales.
