What Will Starbucks Earnings Tell Us?

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Oct. 30 (Bloomberg) -- Julie Hyman previews Starbucks earnings on Bloomberg Television's "In The Loop." (Source: Bloomberg)

I am in agreement with you.

The company acquired this company called bay city bakery which owns la boulange and it has slowly been rolling out new pastries.

The reviews have been good.

The reception has been pretty strong.

The company told me that by the end of this year, about 3500 locations in the united states will have these pastries.

That's about half of the entire u.s. rollout and eventually, other foods will also be rolled out, not just pastries.

Is there any tangible evidence that people are responding to these better choices?

Yes, i talked to an analyst and she said that in chicago, she had done surveying of customers in the wake of this.

One thing is it slows down the speed of the line.

They warm up each and every single one of these pastries.

The speed is lower, starbucks has raised prices on his pastries as it has rolled these out, so it is a wash in terms of the benefit to the company.

She also found that the customer attachment went up because people like the pastries that are.

-- better.

The analyst i spoke to said the speed should improve.

Starbucks is good at execution and as it works out the kinks and does the rollout, that should improve.

What else is starbucks doing to go beyond coffee?

For a while you could buy discs and different things.

It has become a lifestyle brand.

That is something that starbucks has them for many years or it it is opening its first tea only store in new york city on the upper east side.

It is called teavana which is a brand that had acquired.

It is now going to be a stand- alone store.

A lot of both the rapid growth and the highest margin growth is coming now at starbucks from its products that it sells in grocery stores and other channels.

Even though the vast bulk of the company's sales still comes from the stores, it it is trying to look elsewhere for growth.

As we mentioned, they're comparable sales growth is impressive for a chain of its size.

You are talking about 17,000 starbucks around the globe.

They are still growing in the mid to high single digits in terms of that comparable sales growth.

We are looking for a number of 6.7% when it reports after the bell.

There is something to be said about serving addicts, whatever their poison is.

Thank you.

Starbucks earnings are out after the close print it is 56 months past the hour which means it is time for "on the markets." if you take a look at futures, you will see them indicating a higher open.

It markets opened higher and stay higher, that will be the fourth straight day of gains for the s&p 500 and the dow and the nasdaq.

Even along with that slightly disappointing adp jobs report, you still have futures indicating a higher open.

In the next hour, the woman responsible for the roll out of the affordable care act is about to be in the hot seat.

We will take you to dc next.

This text has been automatically generated. It may not be 100% accurate.

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