Consumer
Starbucks’ In-Line Earnings Ease Fears of a Bigger Slump
- Company posted a second straight decline in comparable sales
- CEO confirms Elliott has a stake; says talks are constructive
Starbucks’ business has taken a hit as consumers pressured by inflation and dwindling savings tighten their spending.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
Starbucks Corp. delivered results that were in line with expectations, assuaging investors who had been bracing for another meltdown after being blindsided by the previous quarter’s slump.
Sales at coffee shops open at least a year fell 3% in the company’s fiscal third quarter, the second straight drop. While the number of transactions fell, US diners are spending more each visit, helping to prop up revenue. The company reaffirmed its guidance for the full year.