(Adds details from call, executive comment)
July 24 Starbucks Corp on Thursday said
quarterly sales at established stores in its dominant Americas
region grew a somewhat stronger-than-expected 6 percent,
including a 7 percent rise for the United States that was helped
by food sales.
The third fiscal quarter report from the world's biggest
coffee chain followed disappointing quarterly results from
McDonald's Corp and Dunkin' Donuts parent Dunkin' Brands
But Starbucks' sales gains did not rival those from Chipotle
Mexican Grill Inc. The burrito chain, which has a lot of
customer overlap with Starbucks, on Monday posted an eye-popping
17.3 percent rise in same-restaurant sales and its stock soared
to all-time highs.
Shares in Starbucks were down 2.4 percent to $78.50 in
extended trading following its results. Chipotle and Starbucks
are two of the top-performing U.S. restaurant chains and their
shares can be punished by investors when results do not far
Seattle-based Starbucks' net income was $512.6 million, or
67 cents per share, for the fiscal third quarter that ended June
29. That was up from $417.8 million, or 55 cents, a year
Results from the latest quarter topped analysts' average
estimate by a penny, according to Thomson Reuters I/B/E/S.
Revenue grew 11 percent to $4.15 billion, boosted in part by
the roll-out of new breakfast sandwiches and pastries from its
La Boulange bakery.
Analysts, on average, expected Starbucks quarterly
same-store sales to rise 5.1 percent globally and for the
Americas region, according to Consensus Metrix.
Starbucks raised U.S. prices by roughly 1 percent near the
end of the quarter, due to higher costs for things like coffee
Few restaurant operators are willing to take that risk given
still-weak overall demand. Indeed, high meat prices recently
forced McDonald's to push through some price increases and its
traffic has taken a hit.
Starbucks said U.S. traffic was up 2 percent in the latest
quarter, when customers spent 5 percent more per visit.
Troy Alstead, Starbucks' chief operating officer, told
Reuters in an interview that Starbucks had not noticed any
customer push-back on its price increase.
Chipotle customers shrugged off a price increase in the
latest quarter. In fact, more people flocked to the popular
chain that sells food made with organic produce and
(Reporting by Lisa Baertlein in Los Angeles; Editing by Phil
Berlowitz and Cynthia Osterman)