A Starbucks turnaround is brewing - but perhaps not quickly enough for investors
By Bill Peters
The coffee chain beat expectations on a key sales metric, but its stock was still moving lower
Starbucks has tried to refurbish its stores.
New drinks and coffee-shop makeovers have helped Starbucks regain consumers, but thanks to changes to its business in China, the company still forecast falling sales in its new fiscal year.
Starbucks (SBUX) said Thursday that it expects revenue to fall around 1% for the fiscal year that ends next September, due mainly to a recent decision to shift its China retail operations to a joint venture. Sales of those stores are no longer included in Starbucks' overall revenue figures.
On a call with Wall Street analysts following the company's results, Starbucks executives kept an upbeat tone about the business - highlighting menu upgrades, novelty items and merchandise sales that they said have resonated with people.
Starbucks's espresso refreshers, matcha items and artisanal baked goods showed "continued strength" in the quarter, CEO Brian Niccol said on the call. So did the return of the company's Unicorn Frappuccino and its Peanuts merchandise collaborat...