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Starbucks Presents A ‘Bitter Bean To Swallow’: Analysts Cut Forecasts After FQ2 Results

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Starbucks Corp (NASDAQ:SBUX) shares tanked in early trading on Wednesday, after the company reported a revenue and earnings miss.

The results came amid an exciting earnings season. Here are some key analyst takeaways from the release.

Stifel On Starbucks

Analyst Chris O’Cull maintained a Hold rating while reducing the price target from $90 to $80.

Starbucks offered a “bitter bean to swallow,” with its disappointing results for the fiscal second quarter due to “significant transaction weakness in the U.S.,” which was “compounded by persistent softness in China,” O’Cull said in a note.

“April’s trends have remained soft, as the company has grappled with a more selective consumer and struggled to effectively engage occasional customers, leading the company to meaningful reduce FY24 guidance,” the analyst wrote.

Management provided details of actions planned to curb the sales decline, including accelerated …

Full story available on Benzinga.com

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