<div id="readability-page-1"> <p><img src="https://imageproxy.pbkrs.com/https://m.foolcdn.com/media/dubs/images/email-header-breakfast-news.max-800x600.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="800" height="161" original-src="https://imageproxy.pbkrs.com/https://m.foolcdn.com/media/dubs/images/email-header-breakfast-news.max-800x600.png"/></p> <h2>Breakfast News: SBUX Assesses China Options</h2>  <h3>May 15, 2025</h3>  <div><table> <thead> <tr> <th colspan="2">Wednesday's Markets</th> </tr> </thead> <tbody> <tr> <td><strong>S&amp;P 500</strong><br/>5,893 <span>(+0.1%)</span></td> </tr> <tr> <td><strong>Nasdaq</strong><br/>19,147 <span>(+0.72%)</span></td> </tr> <tr> <td><strong>Dow</strong><br/>42,051 <span>(-0.21%)</span></td> </tr> <tr> <td><strong>Bitcoin</strong><br/>$103,424 <span>(-1.14%)</span></td> </tr> </tbody> </table></div>  <div><p><img src="https://imageproxy.pbkrs.com/https://braze-images.com/appboy/communication/assets/image_assets/images/6825c338486e960067cf6042/original.png/query-MTc0NzMwNTI3MQ?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="1024" height="1024" original-src="https://imageproxy.pbkrs.com/https://braze-images.com/appboy/communication/assets/image_assets/images/6825c338486e960067cf6042/original.png/query-MTc0NzMwNTI3MQ"/></p><p>Source: Image Created by Jester AI.</p> </div> <h2>1. Starbucks Brews Over China Revamp</h2> <p><strong>Starbucks</strong> <span>(SBUX<span> -0.41%</span>)</span> is in talks with potential investors regarding how to expand business in its second-largest market, China, reports Bloomberg. This includes the potential for a possible stake sale valued at several billion dollars.</p> <ul> <li><strong>&#34;We remain committed to China for the long term&#34;:</strong> CEO Brian Niccol cited great potential in China just a few weeks back on the latest earnings call, which could indicate more of a local partnership is being pursued rather than an outright sale.</li> <li><strong>7,750 stores with $740 million in quarterly revenue:</strong> <em>Dividend Investor</em> recommendation Starbucks has come under pressure in the key market due to local players including <strong>Luckin Coffee</strong> and Cotti Coffee taking market share. Luckin's revenue was almost $500 million more than Starbucks in the latest quarter.</li> </ul> <h2>2. Contrasting Outlooks for CoreWeave and Cisco</h2> <p><strong>CoreWeave</strong> <span>(CRWV<span> 7.13%</span>)</span> issued its first earnings release since the March IPO after the market closed, with the stock down almost 8% despite beating revenue expectations due to an underwhelming outlook.</p> <ul> <li><strong>Loss accelerates to $314.6 million from $129.2 million last year:</strong> CEO Mike Intrator warned of higher costs having a negative impact on near-term profit margins as the business is increasing investments, with quarterly losses expected to continue.</li> <li><strong>Taking more than $600 million in AI-infrastructure orders:</strong> <em>Hidden Gems</em> rec <strong>Cisco</strong> <span>(CSCO<span> -0.92%</span>)</span> jumped over 3% after the closing bell thanks to the raise in full-year earnings outlook. This is being fueled by increased demand from cloud customers for AI-related networking equipment.</li> </ul> <h2>3. Key Earnings Today: AMAT, Globant, Deere</h2> <p><strong>Applied Materials</strong> <span>(AMAT<span> 0.66%</span>)</span> is due to release Q1 earnings after the market closes. An update on China-related sales and any tariff impact will be monitored, alongside how AI-driven demand is holding up.</p> <ul> <li><strong>346 accounts exceeding $1 million in annual revenue:</strong> <strong>Globant</strong> <span>(GLOB<span> -4.91%</span>)</span> signaled a positive outlook last quarter, so investors will be keen to see if this materializes with the results released after the trading day finishes. Growth in large client accounts will be a key metric.</li> <li><strong>Farm equipment industry in trade war fallout:</strong> <strong>Deere &amp; Company</strong> <span>(DE<span> -0.26%</span>)</span> released earnings ahead of the market opening, with softer demand and tariff uncertainty meaning the business cut the lower end of its profit forecast.</li> </ul> <h2>4. Foot Locker Rips Higher on Acquisition News</h2> <p><strong>Foot Locker</strong> <span>(FL<span> -3.12%</span>)</span> surged almost 70% ahead of the opening bell following news that <strong>Dick's Sporting Goods</strong> <span>(DKS<span> -1.09%</span>)</span> is in advanced talks to buy the company, with a deal announcement potentially coming today.</p> <ul> <li><strong>41% year-to-date fall in Foot Locker:</strong> The deal would allow Dick's to tap into the 2,400 stores of Foot Locker based in smaller locations around the world, differentiating from the 800 big-box stores it has mostly in U.S. suburbs.</li> <li><strong>&#34;Dick's would be inheriting a business that remains on the back foot&#34;:</strong> Neil Saunders, managing director at GlobalData, noted the turnaround plans for Foot Locker in recent years have been slow, making it far from a risk-free acquisition.</li> </ul> <h2>5. Next Up: Powell Speech and Data Deluge</h2> <p>U.S. Federal Reserve Chair Jerome Powell will speak today in his first public remarks since last week's policy meeting, giving his reaction to the lower-than-expected inflation print earlier this week.</p> <ul> <li><strong>More inflation data to digest:</strong> The Producer Price Index (PPI) for April is expected to fall from 2.7% last month to 2.5%, providing further signs of easing inflation in the domestic economy.</li> <li><strong>Mixed expectations for other releases:</strong> The consensus view for April Retail Sales data is for a 0% increase, a sharp drop from 1.5% growth last month. Initial Jobless Claims are expected to be at 229k, with no real change from the previous week.</li> </ul> <h2>6. Your Take</h2> <p><strong>Walmart </strong><span>(WMT<span> 0.87%</span>)</span> – reporting today – is up 135% over the last 5 years. Across the same period, the S&amp;P 500 is up 106%.</p> <p>Will Walmart be a market-beater over the next 5 years? Debate with friends and family, or become a member to hear what your fellow Fools are saying!</p>                                                                            </div>

SBUX

<p>Starbucks (SBUX) is exploring options to expand its business in China, potentially involving a stake sale valued at several billion dollars. CEO Brian Niccol emphasized the company's long-term commitment to China despite competition from local players like Luckin Coffee. Meanwhile, CoreWeave's stock fell after a disappointing earnings outlook, while Cisco's shares rose due to increased demand for AI-related networking equipment. Foot Locker's stock surged nearly 70% on news of a potential acquisition by Dick's Sporting Goods. Additionally, U.S. Federal Reserve Chair Jerome Powell is set to speak today, with key inflation data expected.</p>

- Starbucks is exploring options to expand its business in China, potentially involving a stake sale valued at several billion dollars, amid increasing competition from local players.  
- CoreWeave's stock fell despite beating revenue expectations due to a disappointing outlook, while Cisco's shares rose on a positive earnings forecast driven by demand for AI-related networking equipment.  
- Foot Locker's stock surged nearly 70% on news of a potential acquisition by Dick's Sporting Goods, despite concerns about Foot Locker's ongoing turnaround challenges.