Starbucks Burns: Is It a Buying Opportunity or a Cautionary Tale?
Starbucks (NASDAQ: SBUX) just had one of the worst weeks in its history.
The global coffee chain experienced its largest post-earnings stock price decline since 2000. It reported falling comparable sales and slashed guidance for the year, and management offered little more than empty buzzwords as a plan to stem the slide.
Globally, comparable sales were down 4% in the fiscal second quarter, including a 6% decline in transactions. There didn't seem to be a geographical bright spot for the company, either. North America and U.S. comparable sales fell 3%, including a 7% comparable sales decline, and China comps were down 11%. Starbucks has long touted China as its top growth market, so those results are especially disappointing, especially as the company was experiencing growth in all major markets just a few quarters ago.
Source Fool.com
Starbucks Corp. Stock
The stock is an absolute favorite of our community with 23 Buy predictions and no Sell predictions.
As a result the target price of 98 € shows a positive potential of 43.7% compared to the current price of 68.2 € for Starbucks Corp..
