Starbucks investors are worried that coffee consumption may be weakening in China, CNBC’s Jim Cramer said Friday.
Shares of the coffee giant struggled for gains despite Starbucks posting better-than-expected quarterly earnings results.
Earnings per share for its fiscal first quarter came in at 46 cents, on revenue of $5.37 billion.
“China comp sales had been at 6 [percent],” Cramer said on “Squawk on the Street.” “It’s decelerated to 5 [percent].”
“I think what people are saying is ‘look, I don’t care about your long-term view that China is on a tear; that you opened 151 stores in the quarter; I don’t care about that. What I care about is maybe the weakness in China is bleeding into coffee. ‘That is the central issue about why the stock is down.”
[“source -pcworld”]
