Shares of Starbucks fell 3 percent on Thursday after the company posted same-store sales growth and revenue that missed analyst expectations.
Same-store sales came up short in all of the company’s regions. However, growth in China was robust, with same-store sales rising 6 percent on the back of a 6 percent increase in transactions.
“China grew revenues 30 percent in Q1, with the strategic acquisition of East China positioning us to accelerate our growth in the key China market,” Kevin Johnson, president and CEO, said in a statement.
In the quarter ended Dec. 31, Starbucks said net income rose to $2.25 billion, or $1.57 per share, from $751.8 million, or 51 cents per share, a year ago.
Excluding items, Starbucks earned 58 cents per share in the latest period, which was a penny better than analysts were expected. Not included in that number is a 7 cents per share benefit from changes in the U.S. tax law.
- Adjusted EPS: 58 cents ex. items vs. 57 cents expected according to Thomson Reuters
- Revenue: $6.07 billion compared to $6.18 billion projected, according to Thomson Reuters
- Overall same-store sales: Up 2 percent vs 3 percent growth projected, according to StreetAccount
The company said that global same-store sales rose 2 percent in the quarter, however forecasts called for same-store sales to be up 3 percent, according to StreetAccount.