Starbucks' Sales Growth Disappoints
Money is not a client of any investment adviser featured on this page. The information provided on this page is for educational purposes only and is not intended as investment advice. Money does not offer advisory services.
Starbucks on Thursday reported cafe sales growth that fell short of expectations in every region where it operates, sending shares of the world's largest coffee chain down 4.6%.
Seattle-based Starbucks said global sales at cafes open at least 13 months rose 6% in the fiscal second quarter ended March 27, compared with the year-ago period. Analysts had expected an overall same-cafe sales gain of 6.7%, according to research firm Consensus Metrix.
Those results included a 7% gain from the Americas region, which accounts for the majority of Starbucks' business. The China/Asia Pacific region (CAP) had a 3% increase. Europe, the Middle East and Africa (EMEA) reported growth of just 1%.
Analysts had expected gains of 7.4% for the Americas, 4.6% from CAP and 3.4% from EMEA.
Second-quarter net income was $575.1 million, or 39 cents per share, matching the average of analysts' profit estimates complied by Thomson Reuters I/B/E/S.
Starbucks shares fell to $57.87 in extended trading, off their all-time high of $62.57 on Oct. 1.
