Starbucks is going through some painful changes right now, and investors don't typically want to get involved in sticky situations.
That makes a lot of sense, except where the challenges look short term and the company in question has a solid history of growth with a winning model.
Yet, this year is off to a good start with the company seeing a 15% revenue increase in its fiscal second quarter (ended April 3).
It also opened more than 300 net new stores for a total of more than 34,000 -- and plans to reach 55,000 by 2030.
PayPal was one of the earlier companies to announce 2022 first-quarter results, and its disappointing outlook was a harbinger of the retail sector's spending slowdown.
Many companies made similar announcements afterwards, exacerbating an already shaky market.
The first quarter was a slowdown from pandemic highs, but the company still posted double-digit growth in total payment volume (TPV) and a 7% increase in revenue.
That was on top of a record first quarter last year. It added 2.4 million net new active customers, for a total of 429 million.
Earnings per share (EPS) declined year over year, but profitability was still strong, with earnings per share of $0.88.
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