KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Revenue Surprise Lifts Stock
Starbucks (SBUX) shares rose 4% in after-hours trading after the coffee chain reported fiscal third-quarter revenue of $9.46 billion, a 4% increase year-on-year and above analysts’ expectations of $9.29 billion.
Adjusted earnings dropped 46% to $0.50 per share, affected by $0.11 in one-off leadership and tax-related costs.
Turnaround Momentum Building
CEO Brian Niccol said the company is “ahead of schedule” in its turnaround plan after six consecutive quarters of earnings declines. He added that 2026 will bring “a wave of innovation” to drive growth and enhance customer experience.
Sales Performance
A 1% increase in average ticket size helped offset a 2% decline in global same-store sales, which came in slightly worse than the 1.5% decline analysts had expected.
Market Perspective:
Starbucks’ ability to beat revenue expectations despite weaker traffic highlights the strength of its brand and pricing strategy. The stock’s reaction reflects growing confidence in management’s turnaround efforts. However, the steep drop in earnings shows the costs of restructuring.
If the company executes on its 2026 innovation roadmap, Starbucks could return to stronger profitability, making current levels a potential early-stage recovery play for long-term investors.
Comments
Post a Comment