Starbucks Misses Earnings, but Stock Rises on Revenue Improvements

Starbucks’ fiscal fourth-quarter earnings fell short of expectations, but the stock rose in after-hour trading Wednesday on news that the company’s same-store sales had finally turned positive. Starbucks’ adjusted earnings of 52 cents a share came in below consensus estimates calling for 56 cents a share, according to FactSet. Unadjusted operating margins fell 7.1 percentage points year over year, partially because of investments in more labor hours, as well as costs associated with closing coffeehouses—Starbucks shuttered 107 stores throughout the quarter.