Starbucks Gives Weak Guidance, Stock Slips 1%

Starbucks

Photo: Starbucks Presentation

Starbucks’ CFO Troy Alstead stated at the William Blair Growth Conference that guidance for the company has been cut after the purchase of Bay Bread, a San Francisco bakery that Starbucks is purchasing for $100 million.The company expects Q3 EPS of 44 to 45 cents and Q4 EPS of 46 to 47 cents, while Wall Street estimates were expecting 46 cents for Q3 and 49 cents for Q4.

Starbucks expects revenues for both quarters 14 per cent. Growth for Q3 is expected to be between 22 and 25 per cent, while growth for Q3 is expected to be 24 and 27 per cent.

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