Starbucks shares fall despite earnings beat
FBN’s Trish Regan on why she supports Starbuck’s response regarding the controversy in which two black men were arrested in one of its coffee shops in Philadelphia.
Starbucks shares sank more than 2% in post-market trading on Thursday even as the coffeehouse chain topped expectations with record quarterly revenue.
The Seattle-based company reported a revenue increase of 13% to $6.03 billion in its second fiscal quarter of 2018, up from $5.3 billion in the same period one year ago and ahead of analyst projections of $5.9 billion, according to Thomson Reuters. The sum marked Starbucks’ highest quarterly revenue in company history.
Adjusted earnings per share rose 18% to 53 cents, matching analyst expectations. Same-store sales rose 2% in the U.S. market. Starbucks reiterated its full-year sales guidance, but warned that it excluded the “yet to be determined impact” of its plan to close all of its more than 8,000 U.S. stores for a portion of the day on May 29 for unconscious bias training. The company also said it expected global same-store sales to rise "near the low end" of its projected 3% to 5% range.
Starbucks has drawn scrutiny in recent days for its handling of an incident at a Philadelphia store location in which two black men were arrested while waiting for an acquaintance without making a purchase. The company issued a public apology.
Starbucks CEO Kevin Johnson is expected to address the incident and quarterly results during a call with analysts late Thursday afternoon.