Starbucks Down on Lower March Sales
07.06.2009, 17:05
Starbucks Corp. stock fell Thursday after the Seattle-based coffee chain reported March sales that were slightly below expectations.
Budapest cheap hotels,
Hotel Budapest
CIBC World Markets' John Glass said a "downshift" from more rapid sales increases sales shouldn't surprise investors. He noted that Starbucks shares are down 20 percent from their December highs.
The 6 percent increase in sales at shops open more than one year led Lehman Brothers to shave a penny off its earnings forecast of 25 cents a share for the quarter that ended in March.
Lehman analyst Jeffrey Bernstein wrote that the slight shortfall will perpetuate a recent correction in stock value.
Banc of America Securities said it expects the stock to remain under pressure. The brokerage said it was expecting comparable-sales to grow 7 percent for the rest of the fiscal year.
None of the analysts mentioned personally owns the stock, but their firms said they seek to do business with companies covered in their research reports.