Starbucks (NASDAQ:SBUX) fell in pre-market trading after the world’s largest coffee chain issued a disappointing profit guidance for the current quarter, to be dented by the strong U.S. dollar.
Shares fell as much as 0.4% as of 8:13 a.m. in New York.
Starbucks projected per-share earnings of $0.44 to $0.45, adjusted for one-time effects, according to a statement from the Seattle, Washington-based company released on Thursday.
Analysts polled by Capital IQ expected $0.47.
For the latest quarter, profit was $0.43 per share, excluding some items, matching analysts’ average estimate.
Net income rose 11% to $652.5mln, and sales increased 18% to $4.91bn, just beating analysts’ $4.9bn average projection.
Starbucks has been trying to improve the quality and selection of its food to help increase sales domestically.
Comparable-store sales rose 5% in the company’s Europe, Middle East and Africa division.
Same-store sales increased 6% in China and Asia Pacific, missing analysts' estimates for growth of 9.6%.
Starbucks has been among the brands that have been growing in China, despite slowing economic growth there and recent stock-market volatility.
The company's board also boosted its quarterly dividend 25% to $0.20.