Starbucks Presents A 'Bitter Bean To Swallow': Analysts Cut Forecasts After FQ2 Results
Portfolio Pulse from Priya Nigam
Starbucks Corp (NASDAQ:SBUX) shares fell after reporting a miss in revenue and earnings for the fiscal second quarter. Analysts from Stifel, Wedbush, and TD Cowen have lowered their price targets for SBUX, citing significant transaction weakness in the U.S., softness in China, and a decline in Starbucks Rewards members. The company has revised its FY24 guidance downwards and plans to implement product innovations, new marketing tactics, and operational enhancements to improve sales.
May 01, 2024 | 5:41 pm
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Starbucks Corp shares declined following a disappointing fiscal second quarter earnings report, with analysts reducing price targets and the company lowering FY24 guidance.
The direct mention of Starbucks Corp's disappointing fiscal second quarter results, coupled with analysts' lowered price targets and the company's revised FY24 guidance, suggests a negative short-term impact on SBUX's stock price. The significant transaction weakness in the U.S. and softness in China, along with a decline in Starbucks Rewards members, are critical factors contributing to the negative outlook. The company's efforts to curb the sales decline through product innovations and marketing tactics are noted, but the immediate reaction has been negative, as reflected in the stock's price action.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100