Fiji Time: 12:43 AM on Friday 23 February

Fiji Times Logo

/ Front page / Archives » Article Index

Cafe sales growth bleak

Reuters
Saturday, January 27, 2018

STARBUCKS Corp on Thursday warned that 2018 global cafe sales growth would be at the low end of its forecast, after holiday drinks fell flat with US customers during what is traditionally its blockbuster quarter.

Shares of the world's largest coffee chain slid 5.2 per cent following the announcement to $US57.30 ($F114), after closing at $US60.55 ($F121) in regular trade.

Sales at established Americas region cafes in the quarter to December 31 were up just 2 per cent, with visits unchanged from a year ago. Analysts polled by research firm Consensus Metrix expected a sales rise of 3.3 per cent.

"Holiday (limited-time offers) and merchandise did not resonate with our customers as planned," Chief Executive Kevin Johnson said on a conference call with analysts.

Starbucks offers holiday-themed drinks such as the Chestnut Praline Latte and Gingerbread Latte as well as gift cards, mugs, coffee and tea gift boxes and teddy bears to woo holiday shoppers.

But US cafe sales growth has cooled as Starbucks continues to add stores, while competition mounts from both high-end and low-priced coffee sellers.

The chain is also working to eliminate bottlenecks that can happen when users of its industry-leading mobile app flood crowded cafes with orders. Starbucks said it now expects 2018 global same-store sales growth at the low end of its previously-issued view of 3 to 5 per cent. However, it raised its fiscal 2018 earnings forecast to a range of $2.48 to $2.53 per share, excluding items, up from $2.30 to $2.33 per share previously, thanks to a US corporate tax cut.








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 0.63400.6150
JPY 54.415451.4154
GBP 0.35770.3497
EUR 0.40670.3947
NZD 0.68870.6557
AUD 0.64290.6179
USD 0.50130.4843

from

$0.00

Exchange Rate updated on 22nd, February, 2018

Today's Most Read Stories

  1. Wheels for ex-PMs
  2. Police brutality claims
  3. Ministers and public transport
  4. 200 vehicles from China
  5. Farmer admitted to Bar after struggle
  6. NFP: No to coup
  7. Public 'sick and tired'
  8. Family homeless after fire
  9. Nasinu family homeless after fire
  10. Students receive access to internet

Top Stories this Week

  1. Long wait Monday (19 Feb)
  2. Wheels for ex-PMs Thursday (22 Feb)
  3. Plans to open caves for public viewing Monday (19 Feb)
  4. None like Gita Friday (16 Feb)
  5. Tears flow for eleven Wednesday (21 Feb)
  6. Masirewa scores biggest try Monday (19 Feb)
  7. Adi Meretui joins SODELPA camp Monday (19 Feb)
  8. Police brutality claims Thursday (22 Feb)
  9. Bitcoin rises above $20,175 Saturday (17 Feb)
  10. Sau's 7s aim Monday (19 Feb)