Starbucks quarter stunk – but 3 shockers should give the bulls hope
You can catch Opening Bid on Apple Podcasts, Spotify, YouTube, or wherever you get your podcasts. One message rings loud and clear from Starbucks’ (SBUX) latest quarterly results: it’s going to take longer than expected for superstar CEO Brian Niccol to turn the coffee beast around. Operating profit margins plunged in all business segments, led by a 640 basis point drop in the North America business. Credit for the sharp declines goes to investments Starbucks is making to improve customer wait times and in marketing to turn the perception of the brand. Same-store sales in North America fell for the third straight quarter, in part because consumers have become more cautious amid the Trump administration’s trade war. And now, the company said it’s reviewing its store base — often a sign of future store closures as the chain looks to improve its operations and margins. But through it all, Starbucks did offer those waiting for a turnaround definitive evidence the business could be in a much better place one year from now. Those callouts include: 1) 25% of Starbucks stores exited its second fiscal quarter with positive transaction growth; 2) 75% of wait times are less than four minutes in test stores; and 3) 50% of Starbucks stores posted positive comparable sales in the important morning hours. For full episodes of Opening Bid, listen on your favorite podcast platform or watch on our website. Yahoo Finance's Opening Bid is produced by Langston Sessoms
