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Stock Strategist

Starbucks Investors, Don't Panic

One company's bad news from China doesn’t mean trouble for the coffee giant.

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Starbucks (SBUX) investors took note of a bleak intraquarter report from Yum China on Sept. 14, sending the coffee chain’s shares down as they contemplated exposure to the region. Yum China management indicated that the sustained spread of the delta variant has resulted in piecemeal closures across 16 of 23 Chinese provinces, and it now anticipated a 50%-60% decline in quarterly operating profit, attributable to deleverage and rising input costs.

Sean Dunlop does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.