The Market Is Hyper-Focused on This 1 Thing From Starbucks Corporation, but Here's What Else You Should Follow
If you were to sum up what Mr. Market will be paying the most attention to next week, when Starbucks Corporation (NASDAQ: SBUX) reports third-quarter earnings, it's comps. That is, comparable sales, which measures revenue at Starbucks coffee shops that have been open for at least 13 months. And for good reason, since after years and years of steadily delivering 5%-plus comps growth, the caffeinated behemoth has seen this important measure of growth slip in recent quarters.
Even more concerning to many investors, Starbucks' comps transaction count -- a proxy for traffic in its restaurants -- was down on a consolidated basis and in the Americas last quarter. This showing has certainly affected Starbucks' stock price, which is more or less where it was one year ago, and down 10% since early June. But at the same time, Starbucks continues to deliver incredible top- and bottom-line results, reporting record profits and sales every quarter for the past several years, as many of the company's growth initiatives pay off.
Image source: Starbucks.
Source: Fool.com