Brian Sozzi: Three Things Investors May Have Overlooked In Starbuck's Fourth Quarter

Starbucks SBUX reported net sales of $4.18 billion in its fourth quarter results which were announced on Thursday. Analysts were expecting the company to report sales of $4.23 billion. Starbucks Americas disappointed analysts as same-store sales rose only five percent, short of the 6.2 percent analysts expected. In addition, Starbucks Americas reported same-store sales growth of six percent in the prior quarter. Traffic to Starbucks Americas rose only one percent in the fourth quarter, marking a slowdown from two percent growth the company saw in the third quarter. In an article on TheStreet.com, Brian Sozzi took a look at three initiatives the company announced that may have flown under the radar. First, Starbucks plans to launch a food and beverage delivery service in the second half of 2015. The company did admit it is in the “very early days” of the initiative and is currently working with partners to handle the distribution system but plans to update investors in December. Second, Starbucks intends to launch “several hundred evening stores” shortly. These stores will be known for selling food menu items that could be shared among a group, potentially taking market share away from restaurants known for appetizers including Applebee's and TGI Friday's. Additionally, Starbucks has already tested selling beer and wine in some locations. Finally, Starbucks continues to target sales growth in China. In the fourth quarter, same-store sales slowed to five percent growth from seven percent in the prior quarter due to lower sales of seasonal packaged goods products.