LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » World News

Starbucks' 2018 may not be as bitter as some fear - analysts

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Updated: Fri, Jan 26, 2018
09:05 pm
Reuters
RELATED NEWS
Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here
India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global
RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21 RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21

Starbucks Corp shares fell 5 percent on Friday after the company reported weak holiday-quarter sales, indicating near-term troubles were far from over, but analysts said the brand`s strength and a growing Chinese fanbase would help it ride out the rough patch.

Over the past year, the world`s largest coffee chain has hit a few bumps as it tries to boost sales - the rollout of mobile ordering that was supposed to attract more customers is still facing issues and it struggles to fill stores in the afternoons and evenings.

On top of that, weak limited-time offers and holiday-themed coffees did not resonate with customers, hurting sales during its biggest sales quarter.

"Subpar 1st quarter top-line results, but we ask if this is a `broken story` or just a great brand with huge moats and large growth opportunities rolling through a rough patch," Morgan Stanley analyst John Glass said in a note.

"We`d argue the latter, but acknowledge a year into the comp deceleration, its show-me time," said Glass, and added that "Starbucks is the retailer with the highest customer frequency of any category we can think of."

Some analysts said the company had made inroads solving its problems.

Starbucks has been adding working hours at some U.S. stores and is focusing on workflow, adding one or two more baristas to service orders during peak hours. It is also testing sending text messages to customers when their orders are ready.

The company is also doubling down in the Chinese market - where the cafe culture is taking off - to offset stagnant sales in the United States. China same-store sales were up 6 percent and Starbucks said it is planning to more than triple its over 3,000-store network in the country within a decade.

It recently opened a massive, showcase Reserve Roastery in Shanghai.

"Our U.S. Starbucks stores, on average, do about $32,000 a week. The Roastery in Shanghai after 8 weeks of operations is doing, on average, twice that, not each week but each day," Howard Schultz, the company`s executive chairman said on a conference call on Thursday.

Schultz stepped down as chief executive last year to focus on Starbucks` premium business and the pressure is mounting on his successor Kevin Johnson to boost growth.

Sales at established Americas region cafes in the quarter to Dec. 31 were up just 2 percent, falling short of Street estimates of a 3.3 percent rise.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Economy
RELATED NEWS
Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here
India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global
RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21 RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21

LATEST NEWS

Salaar Movie Prabhas: Release Date, Cast, Poster, Heroine - Confirmed! Another blockbuster from KGF makers?

Successful! Indian rocket PSLV puts Brazil's Amazonia-1 satellite into orbit

Websites of traditional media houses to come under the ambit of section 69(A) of IT Act: Report

Homebuyers alert! Avoid real estate troubles by knowing these top 5 things before buying flat in 2021

Historic moment! New era of space reforms in India! PM Narendra Modi hails 1st dedicated commercial launch of PSLV-C51/Amazonia-1 Mission

Big insurance offers! 80-100 per cent discounts - All you need to know about renewal of health policies

Mann Ki Baat Latest Episode: What all PM Narendra Modi said in his popular radio programme today - Know here

Centre finalises One District One Focus Product to promote in cluster approach

Apple, Croma join hands on Steve Jobs' birth anniversary

REVEALED! This is the most preferred financial product to protect family post-COVID 19 pandemic

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved