Starbucks Corp (NASDAQ:SBUX, ETR:SRB) shares are set to open more than 2% higher on Wednesday despite the coffee chain experiencing quarterly sales miss, with investors focusing instead on its reiterated guidance and earnings beat.
Sales in the third quarter dropped by 1% year-on-year to US$9.1 billion, dropping below the market’s expectations of US$9.2 billion.
Adding to the problems was a second consecutive quarter of drops in global same-store sales, falling by 3% year-on-year.
Foot traffic also dropped by around 5%.
However, one silver lining was the group’s adjusted earnings per share, after it reached US$0.93, beating Wall Street estimates of US$0.92.
Boss Laxman Narasimhan said that while the current industry background remained “complex”, he was confident the company can regain its position as a market leader.
"[I have] full confidence in the long-term potential of Starbucks worldwide," he said in an earnings call.
"We are not satisfied with the results, but our actions are making an impact.”
Narasimhan added that key indicators were “trending in the right direction ... and our runway for improvement is long.”