Starbucks Earnings Preview: Comps Matter, but These 3 Things Deserve Attention Too
When coffee giant Starbucks Corp. (NASDAQ: SBUX) last reported earnings over the summer, the market was most interested in its comp-store sales growth in U.S. restaurants open more than one year, a measure commonly called comps. It's an important metric, since it reflects the health of the company's biggest, most-profitable segment. Unfortunately, its comps didn't meet the market's expectations, and shares fell 9% on the next trading day. Almost three month later, Starbucks shares are down almost 14%.
With the next report due to land after market close Thursday, there's no doubt Starbucks' U.S. comps will again get lots of attention, and most likely be the tail that wags share-price dog. But they definitely aren't the only thing investors should watch closely.
Three other things deserve close focus: the company's progress in China; its consumer packaged goods segment; and its progress with three initiatives designed to drive growth inside its stores.
Source: Fool.com
Starbucks Corp. Stock
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