Starbucks' Sales Growth Disappoints
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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.