Shares of the coffee giant dropped 2.3% Friday on a JPMorgan note voicing concern on the chain's U.S. same-store sales trends. According to analyst John Ivankoe, Starbucks is seeing steep sales declines in the afternoon and evening hours. Multiple factors are at play here, Ivankoe says, including fewer frappuccino sales without a substitute replacement and core customers not buying a midday caffeine pickup. Weak traffic to retail stores also continues to plague Starbucks, the analyst points out.
If you read TheStreet just a few weeks ago, JPMorgan's note wouldn't be such a surprise.
"What I am most interested in though is how the stock of Starbucks, which has been a dog all year, has finally come back to life -- shares of Starbucks are up about 5% over the past month," we called out Dec. 5. "My gut tells me the move is tied to the general rebound in retailers off solid Black Friday sales data rather than Starbucks experiencing a major re-acceleration in U.S. same-store sales."
Cheers to that morning cold brew coffee.
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