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Starbucks Decline Eases After Coffee Chain Updates Outlook
- Company will continue to increase prices amid rising costs
- CEO vows to protect workers even if it hurts short-term profit
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Starbucks Corp. shares pared an earlier loss in late trading after the company released an updated forecast that only projects a slight impact on profits despite a surge in costs related to labor and the ongoing pandemic.
The company now sees earnings per share falling 4% to 6% in its current fiscal year, versus a prior view that it would decline 4% or less. The change to its guidance on operating margin -- a gauge of profitability -- was also modest. Starbucks reiterated its earlier projection for revenue and comparable-store sales.