Consumer Business Report: Wal-Mart CATALYST For Inquiry, Starbucks’ RESULTS Contageous
The practices of Wal-Mart Stores, Inc. (NYSE:WMT) in Mexico were apparently the catalyst behind the Securities and Exchange Commission and the Department of Justice possibly initiating an inquiry of the retail sector for breaches of the anti-foreign bribery law, according to Reuters. The agencies are now deliberating such a move subsequent to other unnamed retailers reporting possible offenses by their employees.
Starbucks Corporation (NASDAQ:SBUX) shares slumped notably after the coffee major’s fiscal third quarter estimates, which guided both the fiscal fourth quarter and also fiscal year 2013 forecasts lower, plus making pessimistic remarks on its earnings call concerning U.S. traffic, demand in Europe, the Middle East and Africa, and K-Cup margins. Baird lowered Starbucks to Neutral, but Deutsche believes that speeding up unit growth, ongoing same-store sales growth, and lower coffee commodity prices are producing a buying opportunity. In the meantime, shares of Green Mountain Coffee Roasters, Inc. (NASDAQ:GMCR) moved up, but those of Dunkin’ Brands (NASDAQ:DNKN), and Coffee Holding Company, Inc. (NASDAQ:JVA) fell on the day.
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