Why did Starbucks stock rise on 6 October?
Written after the close on
Starbucks +1.78%
Starbucks rose sharply as its turnaround progress drew buyers. Over the last five trading days Starbucks rose slightly, lagging a clearly higher S&P 500 and a clearly higher Consumer Cyclical sector, with the week's gains concentrated in the latest session. The sharp single-day rise likely reflected renewed confidence in the "Back to Starbucks" turnaround — same-store sales (sales at cafes open at least a year) returning to growth, a cafe makeover entering its next phase, and a holiday menu launch — partly offset by a class-action lawsuit filed in early October alleging some "sugar-free" protein drinks contained well above the legal threshold for that label, plus store closures carrying a roughly $300 million restructuring charge. The stock had been weak over the past month, so the bounce looks partly like a rebound from oversold levels rather than a single new catalyst. Watch the late-October earnings report, where consensus looks for earnings per share of $0.72 on revenue of about $9.25 billion.
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