After a mixed earnings report, Starbucks rises as it said to reopen its US stores.
Last Tuesday, Starbucks reports showed a 5% fall in revenue to $6 billion. Although it is a decline, it is still above the analysts’ expectations of $5.74 billion. The EPS was 32 cents, higher than the 31 cents expected.
For the American version, the same-stores sales dropped by 3%, while internationally, it dove 32%.
For the Chinese market, the company envisions a significant recovery during the current fiscal year. For the third quarter, same-store sales will probably drop between 25% - 35%. For the last quarter, the fall expected is only 10%, according to market analysts.
After the announcement, Starbucks stock fell 0.8% to $77.50.
But the fall didn't take too long, because yesterday Starbucks went up 3% after the coffee giant announced the reopening of more than 85% of the American stores by the end of this week. But giving the current situation, clients won't be allowed to dine-in. The stores will provide pick-up and deliveries, and also, drive-through. By the end of next month, the company expects over 90% of its stores to be functional with limited working hours.
Starbucks' stock price was down 8% to the date. USA500 lost 4%.
See the difference when trading with CAPEX.com by accessing elite features:
- Stellar custom service
- Powerful WebTrader platform and mobile app
- High-end integrated trading tools
- Full license and regulation from top regulators
Sources: marketwatch.com, investors.com
The information presented herein is prepared by CAPEX.com and does not intend to constitute Investment Advice. The information herein is provided as a general marketing communication for information purposes only and as such it has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience or current financial situation. Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance is not a reliable indicator of future results.
Utilizatorii/cititorii nu ar trebui să se bazeze exclusiv pe informațiile prezentate aici și ar trebui să facă propriile lor cercetări/analize, prin citirea cercetărilor de bază. Conținutul acestui document este generic și nu ia în considerare circumstanțele personale ale fiecărui individ, experiența de investiții sau situația financiară actuală.
Prin urmare, Key Way Investments Ltd nu va accepta nicio responsabilitate pentru eventualele pierderi ale traderilor datorate utilizării conținutului sau a conținutului informațiilor prezentate în acest document. Performanța din trecut nu este un indicator viabil pentru rezultate viitoare.