Starbucks Revenue Misses Estimates as U.S. Growth Slows
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Starbucks, the world’s largest coffee-shop chain, reported third-quarter revenue that missed analysts’ estimates after same-store sales growth slowed in the Americas, its biggest region.
Sales rose 7.3% to $5.24 billion in the quarter ended June 26, the Seattle-based company said in a statement on Thursday. That trailed analysts’ $5.34 billion average estimate. Same-store sales climbed 4% in the Americas, decelerating from a 7% increase in the prior quarter. Analysts projected a 6.1% gain for the third quarter, according to Consensus Metrix.
While Starbucks has been adding locations and advertising new items, the chain is grappling with U.S. consumers who have been reluctant to spend. The University of Michigan’s preliminary sentiment index fell to a three-month low in July as the U.K.’s vote to leave the European Union flustered higher-income earners. Starbucks also revamped its domestic rewards program earlier this year, which confused some customers and may have driven them to other restaurants.
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