Starbucks shares fall after guidance disappoints investors

Roasted.

Starbucks Starbucks

Starbucks reported its Q2 results after the closing bell on Thursday, with earnings and revenue topping analyst estimates. Earnings were $0.40 per share on revenue of $3.20 billion while analysts were looking for $0.39 on $3.18 billion.

Shares traded lower after Starbucks announced the results as its guidance disappointed investors. Management sees earnings of $0.45-0.46 per share in Q3 while analysts had forecast $0.46 many remain concerned about rising commodity costs.

The quarter was a busy one for Starbucks, as the coffee giant looks to differentiate itself from competitors by expanding its focus on single-cup coffee machines and offering beer and wine at some Pacific Northwest locations. Additionally, it unveiled a lighter blend of coffee, the blonde roast, as it looks to gain market share from Dunkin’ Donuts (DNKN) and McDonald’s (MCD).

Starbucks (SBUX : NASDAQ : US$60.66), Net Change: 1.16, % Change: 1.95%, Volume: 14,046,301

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Canaccord Genuity Inc. is a global investment banking and institutional brokerage firm. Their website is www.canaccordgenuity.com.

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