Disappointing fiscal first-quarter results for Starbucks

  • Starbucks reports fiscal first-quarter profit and sales below expectations
  • Revenue rose 8% to $9.4 billion, missing estimates
  • Adjusted earnings per share were 90 cents, below forecasts
  • Same-store sales rose 5%, lower than expected
  • Operating margins expanded to 15.8%
  • Shares rose 2.3% after hours

Starbucks Corp. reported lower-than-expected fiscal first-quarter profit and sales. The company’s revenue increased by 8% to $9.4 billion, falling short of estimates. Adjusted earnings per share were 90 cents, below forecasts. Same-store sales rose by 5%, which was lower than expected. However, operating margins expanded to 15.8%. Following the announcement, shares of Starbucks rose by 2.3% after hours.

Public Companies: Starbucks Corp. (SBUX)
Private Companies:
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Factuality Level: 8
Justification: The article provides specific financial data and compares it to Wall Street expectations, indicating that the information is based on factual data. However, it does not provide any additional context or analysis, which could have improved the overall factuality level.

Noise Level: 7
Justification: The article provides relevant information about Starbucks’ fiscal first-quarter performance, including profit, sales, and adjusted earnings per share. It also mentions the comparison with Wall Street’s expectations and provides data on same-store sales and operating margins. However, it lacks analysis or insights into the reasons behind the missed expectations and the impact on the company’s future prospects. Additionally, the article does not provide any actionable insights or solutions for readers.

Financial Relevance: Yes
Financial Markets Impacted: Starbucks Corp. (SBUX) and its stock market

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to financial topics as it discusses Starbucks’ fiscal first-quarter profit and sales. However, there is no mention of any extreme event or its impact.

Reported publicly: www.marketwatch.com