Fiji Time: 1:03 PM on Sunday 21 January

Fiji Times Logo

/ Front page / Archives » Article Index

Starbucks sales and profit forecast disappoint, shares drop

Reuters
Saturday, November 04, 2017

STARBUCKS Corp (SBUX.O) cut its profit forecast and posted disappointing quarterly results on Thursday, amid a bitter battle with competitors ranging from boutique coffee seller Intelligentsia to lower-price rivals like McDonald's.

Investors, long used to Starbucks exceeding investor expectations, sent shares down 7.3 per cent to $US50.85 ($F105) in after-hours trade.

The Seattle-based coffee chain said it now sees long-term earnings per share growth of 12 per cent or greater, versus its prior call for growth of 15 per cent to 20 per cent.

Fourth-quarter revenue missed Wall Street's target after sales at established global cafes gained two per cent, less than analysts' average target of 3.2 per cent, according to Consensus Metrix.

Hurricanes Harvey and Irma battered same-store sales at more than 1100 US cafes.

Sales at mainstay US cafes were down two per cent for the quarter that ended October 1, excluding the hurricane impacts, they would have been up three per cent — still just short of analysts' estimate.

Analysts have warned that the Seattle-based company is being "middled" by rising competition on the value and quality fronts and that it must bolster sales of higher-priced specialty drinks and breakfast sandwiches.

Chief executive Kevin Johnson told Reuters in an interview that there was no evidence Starbucks was being hit by competition. "We are not going to be squeezed in the middle," he said.








Fiji Times Front Page Thumbnail

Kaila Front Page ThumbnailFiji Times & Kaila Frontpage PDF Downloads

Use the free Acrobat Reader to view.

Westpac
Code Inward TTs Outward TTs
CAD 0.62390.6049
JPY 56.369653.3696
GBP 0.36040.3524
EUR 0.41060.3986
NZD 0.69380.6608
AUD 0.63130.6063
USD 0.50390.4869

from

$0.00

Exchange Rate updated on 19th, January, 2018

Today's Most Read Stories

  1. Back to work
  2. Do the right thing and resign: Biman
  3. Fiji not built on smiles and fake promises, says Bainimarama
  4. ATS seeks legal advice
  5. Justice prevails, says Rabuka
  6. Unsafe practice
  7. Tribunal ruling is a victory for workers, says Chaudhry
  8. For a place in fashion festival
  9. 40th anniversary
  10. Living with NCDs hinders productivity

Top Stories this Week

  1. Trip turns tragic Thursday (18 Jan)
  2. Mela beats the odds Thursday (18 Jan)
  3. Nadi man dies in crash Wednesday (17 Jan)
  4. Tube ride to school Thursday (18 Jan)
  5. Teachers transfer policy Monday (15 Jan)
  6. Patient info leaked Friday (19 Jan)
  7. Man attacks partner Monday (15 Jan)
  8. ATS Impasse: Tribunal orders return of all workers in 48 hours Saturday (20 Jan)
  9. Ray of hope Wednesday (17 Jan)
  10. Back to the tents Monday (15 Jan)