Starbucks' Slowing Growth: Time to Panic?

Why investors shouldn't worry about the coffee giant's latest sales growth figures.

Jan 30, 2014 at 3:10PM

Starbucks' (NASDAQ:SBUX) 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.

Sbux Comps

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 (NYSE:MCD), 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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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.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

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Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

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KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't 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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