What Happened: Shares of coffeehouse chain Starbucks (NASDAQ:SBUX) jumped 7.34% in the morning session after the company reported fourth-quarter results that beat analysts' revenue expectations based on higher-than-expected same-store sales. Gross and operating margins were ahead, leading to an EPS beat. Given some of the mixed sentiment around the stock and uncertainty with regards to consumer spending lately, this was a welcome result. Additionally, as this quarter is the last of this fiscal year, Starbucks gave guidance for the next fiscal year that was largely in-line to slightly ahead of expectations. The standout was EPS guidance, which was comfortably ahead. Overall, this was a solid quarter for Starbucks.
Is now the time to buy Starbucks? Find out by reading the original article on StockStory.
What is the market telling us: Starbucks's shares are not very volatile than the market average and over the last year have had only 3 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Starbucks is up 0.38% since the beginning of the year, but at $101.27 per share it is still trading 11.6% below its 52-week high of $114.56 from April 2023. Investors who bought $1,000 worth of Starbucks's shares 5 years ago would now be looking at an investment worth $1,570.