Fiji Time: 1:28 AM on Tuesday 21 November

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 0.62050.6015
JPY 55.545452.5454
GBP 0.36760.3596
EUR 0.41340.4014
NZD 0.71590.6829
AUD 0.64370.6187
USD 0.48830.4713

from

$0.00

Exchange Rate updated on 20th, November, 2017

Today's Most Read Stories

  1. Fiji Bati requests for continued prayers
  2. Tsunami watch for Fiji
  3. Resort schooner sinks, passengers and crew safe
  4. Schooling in tents
  5. Tura's mountain
  6. Drug raid ends in arrest
  7. FSC 'technically insolvent', says NFP leader
  8. Estonia downs Fiji 2-0
  9. RKSOB lead fight against prostate
  10. Parental negligence investigated in alleged rape case

Top Stories this Week

  1. Fiji places second for Miss World 2017 talent Wednesday (15 Nov)
  2. COP23: France invite for Timoci Friday (17 Nov)
  3. Students holiday fares clarified Tuesday (14 Nov)
  4. Where there's a will... Thursday (16 Nov)
  5. Stunningly impressive Tuesday (14 Nov)
  6. Walker brothers' radar focuses on Fiji Bati kingpin Friday (17 Nov)
  7. Bati-mania Tuesday (14 Nov)
  8. Tighten defence Wednesday (15 Nov)
  9. 'God first' Sunday (19 Nov)
  10. Timoci opens COP23 Thursday (16 Nov)