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Editorial: Wait, how much for a latte? Even high-flying Starbucks is suffering. [Yahoo! Finance]
Last starbucks corporation earnings: 4/28 04:05 pm
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US:NASDAQ Investor Relations: investor.starbucks.com/ir-home/default.aspx
The Seattle-based coffee chain, ubiquitous in the U.S. and increasingly a truly global franchise, on Wednesday laid one of the biggest eggs it ever has on Wall Street with a first-quarter earnings report that sent many investors running for the exits like their caramel frappuccinos were on fire. The stock closed down nearly 16% on more than eight times the average trading volume. We could bore you with the numbers, but suffice to say there was investor shock over a brand that has known decades of robust growth reporting a 4% year-over-year decline in same-store sales. The obvious concern: Have U.S. consumers (not to mention those in China and other countries) finally hit a limit on how much they will pay for a cup of coffee? Starbucks has defied this concern for decades, deftly pitching its offerings as premium experiences even as the company's footprint expanded relentlessly into what now seems like every hamlet or street corner in the country. In some cities, it feels like even
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