Starbucks Announces Acquisition of La Boulange Bakery; Stock Falls 2.50%
Starbucks (NASDAQ: SBUX) announced after the close of trading on Monday that it was acquiring La Boulange Bakery for $100 million. The company said that it expects the buyout to dilute earnings by roughly $0.02 per share in the second half of fiscal 2012 compared to previously announced earnings targets.
The company had said earlier in the day that it would be making an announcement after the market close, which pushed shares up 3.36% to $53.90. Not surprisingly, SBUX is now falling in the after hours, as this announcement was not very significant. At last check, SBUX was down 2.60% to $52.50 in Monday's after hours session.
Other stocks that are moving on this news include Panera (NASDAQ:PNRA) and Green Mountain Coffee Roasters (NASDAQ:GMCR). Some are interpreting the news from SBUX as a move designed to capitalize on the strong operating trends at Panera. Potentially SBUX could be a threat to steal market share from PNRA. Shares of the St. Louis-based casual dining company are down nearly 2% in Monday's after hours to $137.55.
Also, it seems as if some traders bought Green Mountain Coffee Roasters (NASDAQ:GMCR) this afternoon ahead of the Starbucks announcement. That stock closed the regular trading session up 4.73% to $23.48, but has subsequently lost 2.34% to $22.93 when the announcement didn't prove significant for GMCR's business.
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