Starbucks CEO Laxman Narasimhan gave an interview to CNBC’s Jim Cramer following the company’s impressive fourth-quarter earnings. Narasimhan highlighted Starbucks’ expansion plans in China, revealing their goal to reach 9,000 stores in the country by the end of 2025. Despite facing challenges due to China’s zero-Covid policy, the company recorded a 5% increase in same-store sales and an 8% increase in customer traffic. Narasimhan pointed out that per capita coffee consumption in China stands at just 12 cups, compared to 380 cups in the US and 280 cups in Japan, indicating significant growth potential. He also emphasized the success and growth opportunities in Shanghai, where Starbucks already operates over 1,000 stores.
Starbucks’ fourth-quarter revenue exceeded expectations, reaching $9.37 billion, while earnings per share came in at $1.06, surpassing estimates. The positive news led to a 9.5% increase in the company’s stock price. Narasimhan’s interview showcased Starbucks’ strong position, future plans, and their ability to thrive in challenging circumstances.
Keywords: Starbucks, CEO, Laxman Narasimhan, CNBC, Jim Cramer, fourth-quarter earnings, China expansion, growth potential, revenue, earnings per share, stock price.
*Why did we choose this article for headlines4happiness, what makes this news a good news?*
1. Impressive fourth-quarter earnings: The article highlights Starbucks’ strong financial performance, exceeding revenue expectations and surpassing earnings per share estimates. This suggests the company is thriving and doing well financially.
2. Expansion plans in China: Starbucks’ goal to reach 9,000 stores in China by 2025 showcases their ambition and growth potential in one of the world’s largest markets. This demonstrates Starbucks’ commitment to expanding and reaching new customers.
3. Overcoming challenges: Despite facing challenges due to China’s zero-Covid policy, Starbucks still managed to record a 5% increase in same-store sales and an 8% increase in customer traffic. This resilience and ability to adapt in challenging circumstances is inspiring.
4. Potential for growth: The low per capita coffee consumption in China compared to the US and Japan indicates significant growth potential for Starbucks in the country. This presents exciting opportunities for expansion and market penetration.
5. Positive stock performance: The article mentions that Starbucks’ stock price increased by 9.5% following the positive fourth-quarter results. This implies investor confidence and suggests a positive outlook for the company’s future.
Overall, the article conveys a positive narrative about Starbucks’ financial success, expansion plans, ability to overcome challenges, growth potential, and positive market response. This generates good thoughts and portrays Starbucks in a favorable light.
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