Last night's trading update from Starbucks Corporation (NASDAQ:SBUX) left a sour taste in the mouth this morning.
The overpriced coffee peddler's fiscal first quarter earnings were in line with expectations at 52 cents a share, but like-for-like (LFL) sales were disappointing.
First quarter sales rose 7% from a year earlier to US$5.73bn, when there were 2,163 fewer Starbucks outlets in the world.
That was a record total for the coffee shop operator that specializes in offering a bewildering array of hit beverages, but analysts had been expecting sales of US$5.83bn.
LFL sales, which ignore contributions from shops less than a year old, were up 3% year-on-year, representing a slow-down from the previous quarter's 4% growth.
LFL sales in the Americas heartland were also up 3%, despite a 2% decrease in the number of customer purchase.
“We are pleased with the record Q1 financial and operating results we announced today, particularly given that the results were delivered in the face of a challenging environment for restaurant retailers overall,” said Scott Maw, the chief financial officer of Starbucks.
Shares were down 4% in the first half hour of trading on Friday.