Starbucks (SBUX) turned in an OK performance and its stock moved only a little over 2% up in pre-market trading.
Revenue rose from $1.66 billion in the quarter a year ago to $2.01 billion, up. But, earnings rose only 10.6% to $243 million.
Sales at coffee shops open at least 13 months, a key retail measure known as same-store sales, rose 4 percent. The company opened 668 new stories during the period
The market was relieved, but it was not heartened.
At this point, the market will need to see more than a 4% gain in same-store sales to drive the shares much higher. Even with the small rally after the report, Starbucks shares are under $28 on a 52-week high/low of $40.01/$25.22. Those are hardly growth stock numbers.
But, for now, Starbucks is not a growth stock.
Douglas A. McIntyre