NEW YORK (TheStreet) -- Starbucks (SBUX) posted better than expected fourth quarter financial results after the market close on Thursday afternoon, however the coffee giant noted that the U.S. presidential election is creating uncertainty for consumers.
"I would label this time as one with a high degree of uncertainty, domestically driven, but it has affected the rest of the world. Where we have visited, we have never witnessed such concern as a result of the (U.S. presidential) election," company CEO Howard Schultz said yesterday on a call with investors.
The company missed the 5% U.S. sales target, which it promised to return to last quarter. U.S. same-store-sales grew by 4%, just below the 4.8% increase Wall Street was looking for.
The panel on Fox Business Network's "Varney & Co." weren't too sure how Starbucks' come to its conclusion and linked the sales figures to the election.
"You know you wonder how did they come up with that logic that 'oh, it's the election and uncertainty, so I'm not going to buy a latte,'" FBN's Elizabeth MacDonald asked. "I just didn't really, couldn't square that."
With the help of analysts MacDonald looked into consumer spending growth from the second quarter, which was found to be cut in half.
"That's the big uncertainty and anxiety over 'what are my health costs going to be in the future?' So people are pocketing their money according to economists that we've been talking to," she continued.