GM Kills $10 Million Facebook Ad Campaign Because It Didn't Work
JCPenney's Ron Johnson: 'Customers Don't Get Our Pricing Strategy'While Starbucks Corporation (SBUX) is reporting 22% revenue growth in June and meeting its own target of same-store sales gains between 3 percent and 7 percent, share prices dipped $1.27 (about 3.3%) after-hours tonight. The news in the latest release that spooked investors: sales at retail outlets open at least 13 months rose only 6% in June -- a number that was unfortunately on the low side of the 6% - 8% Wall Street estimate.
Analyst Dan Geiman of McAdams Wright Ragen was still rating SBUX a buy as of July 3rd. Starbucks CEO and President Jim Donald seems content enough. "In June, we continued to deliver solid revenue and comparable store sales growth in line with our growth targets," he was quoted saying in the press release.
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Reader Comments (Page 1 of 1)
7-07-2006 @ 10:45AM
Mr. noitall said...
I've made these points before, but I'll say it again.
Sbux is a definate sell. The company has too much going against it right now. The stock is overpriced, the product is overpriced, and worst of all.... it's a "fad" company. I believe they are allready being hurt by inflation, (I would laugh in the face of anyone complaining about gas prices, while they are holding a $40 per gallon cup of coffee in their hand). But the biggest problem with sbux, like I said, is it's fad status. Once Starbucks no longer becomes the "cool" place to go, the stock price get's cut in half.