Starbucks' Slowing Growth: Time to Panic?

Updated

Starbucks' latest sales growth figures didn't pack the same punch that investors have been used to seeing lately: Comparable-store sales improved by just 5%, the worst result in over a year.

Source: Starbucks financial filings.


Still, that's no reason to worry about the beverage giant, according to Fool contributor Demitrios Kalogeropoulos. In the video below, Demitrios argues that there are two reasons that figure shouldn't scare investors. First, most retailers would love to have a 5% sales growth "problem" these days. Many global companies, including McDonald's , had trouble booking any growth at all last quarter. And second, Starbucks' sales results didn't include any lift from extra sales of loyalty cards, which will benefit future quarters instead.

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The article Starbucks' Slowing Growth: Time to Panic? originally appeared on Fool.com.

Demitrios Kalogeropoulos owns shares of McDonald's and Starbucks. The Motley Fool recommends and owns shares of McDonald's and Starbucks. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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