Starbucks Corporation (NASDAQ:SBUX) has cut its full year earnings estimate after reporting quarterly sales that missed market forecasts.
Shares fell 3.0% to US$59.47 in early US trading.
The coffee brewer reported a 6% increase in second quarter revenue to US$5.3bn, below analysts’ estimates of US$5.4bn. Same-store sales increased 3.0%, compared to expectations for a 3.6% gain.
US transactions fell 2% for the second quarter in a row and the average amount spent per order was up 4%, compared to a 5% increase the prior quarter.
Stalling growth from its main business in the US and rising competition led the company to cut its full year earnings target to a range of US$2.06 to US$2.10 per share from a previous US$2.09 to US$2.11 per share.
The company also said revenue growth would be at the lower end of its previous guidance range of 8% to 10%.
Starbucks has also encountered problems with its mobile-ordering technology, which has caused traffic jams as more people use the platform to order their drinks.