Starbucks reported record revenue in its fiscal third quarter, yet the company’s results were mixed for the 13 weeks ending July 2, according to the Associated Press. While its earnings surpassed Wall Street’s forecast, its revenue and same-store sales were lower than expected as North American store traffic slowed.
Starbucks shares were down 1% in after-market trading Tuesday.
North American same-store sales growth slowed to 7% after three quarters of double-digit gains. Customers paid more for their drinks and food, and revenue rose 11% to a record $6.7 billion for the region, but customer traffic was up just 1%.
The coffee giant said its overall revenue rose 12% to $9.2 billion in the quarter. Analysts had expected revenue of $9.3 billion, according to FactSet.
Starbucks’ global same-store sales increase of 10% was also lower than Wall Street’s forecast of 11%.
The company’s net income rose 25% to $1.1 billion, or 99 cents per share. Excluding restructuring costs, the company earned $1 per share. That was higher than the 95 cents analysts forecast.
Starbucks Chief Financial Officer Rachel Ruggeri said the company now expects its full-year earnings to grow 16% to 17% this year. The company had previously forecasted growth of 15% to 20%.
