3 Reasons Starbucks Is Seizing Market Share
Shares of Starbucks (NASDAQ: SBUX) jumped on Wednesday after the java giant turned in better-than-expected results in its second-quarter earnings.
The numbers were ugly, as expected. Starbucks bore the brunt of the impact from the coronavirus pandemic, since the majority of its U.S. stores were closed at the beginning of the quarter, and the company lost sales as normal commuting routines were disrupted. Let's look at the headline numbers:
While Starbucks may have just had the worst quarter in its history, the company is rebounding quickly and expects to return to profitability in the current quarter, forecasting adjusted earnings per share of $0.18 to $0.33. Investors also cheered when the company said that comps at the 3,100 U.S. stores that were open the entire quarter were up 2% in July so far after a drop of just 1% in June. That's evidence that stores in areas less affected by the pandemic aren't seeing any sales impact at this point.
Source Fool.com
