Starbucks Shares Sink, But Analysts Are Optimistic About Future Growth
Starbucks Corp. shares sank 6.3% in Friday premarket trading toward a four-month low after the coffee company reported third-quarter revenue that missed expectations. Sales for the quarter totaled $5.66 billion, below the $5.76 billion. Starbucks shares were downgraded to hold at Stifel, according to FactSet. Wells Fargo maintained its overweight rating, on the other hand, based on factors like its loyalty program and strong execution on initiatives including food and tea, which positions the company to reaccelerate growth. "While Starbucks has been (and to a large extent continues to be) immune to the broader retail challenges in the U.S., clearly the breadth and reach of the retail headwinds are increasingly impacting Starbucks," analysts led by Bonnie Herzog said. Starbucks shares up 7.2% for the year to date while the S&P 500 index is up 10.6% for the period.
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