Starbucks beats earnings, but shows slowed growth in Asia
Starbucks shares fall following earnings
If only Instagram were indicative of market earnings. Despite all the pictures of Starbucks pumpkin spice lattes polluting social networks over the last month, shares of the coffee company fell 2.5% after earnings were released on Wednesday. Starbucks’s net profit rose to $481M, up from $359M and an EPS of $.63 beat expectations. Revenue grew 13% to $3.8B to meet expectations. It wasn’t all good news though, as sales growth slowed in Asia. Last week I wrote about how Starbucks pissed off the Asian media by charging more for their drinks in China than the U.S. Perhaps it is time to rethink that strategy.