Starbucks: stock slips after forecasts disappoint

(CercleFinance.com) - Starbucks late on Thursday forecast growth below the consensus, which sent its shares down over 3% today on the Nasdaq.


At its investor conference in New York City, the coffee chain said it is now targeteing same store sales growth of 3% to 4% globally, down from a range of 3%-5% previously.

Also over the longer term, Starbucks expects consolidated revenue growth of 7% to 9% and non-GAAP EPS growth of at least 10%, down from over 12% previously.

"We believe the reset expectations are realistic," analysts at Wedbush reacted after the meeting.

The broker said that it does not expect near-term drivers of positive revisions to materialize, and only remains "cautiously optimistic" on China's potential contribution.

Yesterday in New York, Starbucks also announced the launch of deliveries to nearly a quarter of its US company-operated stores as part of a partnership with Uber Eats.

In addition, the Seattle-based company promised "new products and market opportunities" from its global alliance with Nestlé.

However, these prospects failed to convince investors, with the shares currently down 3.1% at 64.8 dollars.

Copyright (c) 2018 CercleFinance.com. All rights reserved.