Starbucks Fails To Serve Hot Results, Brewing Analyst Concerns Over China Sales, Boycott Effects
Portfolio Pulse from Priya Nigam
Starbucks Corp (NASDAQ:SBUX) shares fell after reporting Q1 results below expectations, with concerns over China sales and boycott effects. Analysts from Wedbush, Stephens, TD Cowen, William Blair, and KeyBanc Capital Markets provided mixed outlooks, maintaining various ratings and price targets. The company's guidance for the full year remains unchanged despite lower U.S. and China comps, but analysts are skeptical due to the weak Q1 performance and soft January sales.
January 31, 2024 | 5:16 pm
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Starbucks reported disappointing Q1 earnings with lower-than-expected same-store sales growth and operating margin, particularly in China. Despite maintaining full-year EPS growth guidance, analysts are cautious due to the weak start and potential ongoing challenges.
The negative impact on SBUX's stock price is likely due to the reported earnings miss, which can erode investor confidence and lead to a bearish outlook in the short term. The specific mention of disappointing sales in China and the effects of a boycott add to the concerns, potentially affecting the stock's performance.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100