Starbucks Sales Rise as Turnaround Costs Weigh on Margins
Starbucks reported a 7.1% rise in North American same-store sales as turnaround efforts drove traffic. Higher staffing costs kept operating margins at 9.9%.
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STARBUCKS CORP shares rose 9% in United States midday trading Wednesday after posting its strongest quarterly sales growth in 30 months. North American same-store sales rose 7.1% in Q2, though operating margins fell to 9.9% from 18% two years ago. Investors are weighing whether CEO Brian Niccol can restore profitability as staffing costs rise by $500M.
