Rising Costs Are Brewing at Starbucks

Starbucks (NASDAQ: SBUX) announced its fiscal 2022 first-quarter financial results on Feb. 1. While year-over-year revenue growth of 19.3% exceeded Wall Street's expectations, adjusted earnings per share (EPS) of $0.72 fell short. Furthermore, certain aspects of full-year guidance were lowered in response to today's challenging economic environment. 

The business was negatively affected by the pandemic with temporary store closures across its global footprint creating a difficult situation for management to navigate. Even this top restaurant stock and powerful consumer brand isn't immune to the broader issues that are currently plaguing the economy. 

Let's take a closer look. 

Continue reading

Source Fool.com