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© Reuters.
By Dhirendra Tripathi
Growth of 11% in sales to $6.7 billion for the quarter ended in March was below expectations. China comparable same-store sales grew 91% but the fear of a shift in consumer preferences to local brews may be scaring investors, CNBC said.
China is the coffee brewer’s fastest-growing market, and the biggest one outside the U.S.
For the fiscal year, Starbucks is projecting revenue between $28.5 billion and $29.3 billion, from the $28 billion to $29 billion range given earlier.
The forecast for EPS has also been raised to between $2.90 to $3 per share, from the prior $2.70 to $2.90.
It reiterated its guidance for a 17% to 22% same store sales growth in the Americas and U.S., and 27% to 32% growth in China.
The fall in the share price came even as analysts at Wedbush and Oppenheimer reiterated their buy rating for the stock.
Wedbush analyst Nick Setyan has a target of $132 for the stock. That’s 18% higher from the stock’s current level. Oppenheimer sees it even higher at $135.
The recommendations came before the release of the earnings.
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