Tags: Starbucks | earnings | coffee | breakfast

Starbucks Sales Trail Estimates Amid Breakfast Rivalry

Thursday, 30 Oct 2014 04:46 PM

Starbucks Corp., the world’s biggest coffee-shop chain, posted fiscal fourth-quarter revenue that trailed analysts’ estimates as increased competition for breakfast diners’ dollars hurt U.S. sales.

Revenue in the period ended Sept. 28 rose 10 percent to $4.18 billion, the Seattle-based company said Thursday in a statement. That missed analysts’ average projection of $4.24 billion.

Starbucks has been introducing new food and drinks to draw diners later in the day while competitors are pushing more breakfast fare. McDonald’s Corp. is advertising white-chocolate lattes and has been giving away free coffees, while Dunkin’ Donuts recently brought back its spicy smoked-sausage sandwich. This year for the holiday season, Starbucks is introducing a chestnut praline latte to attract Americans.

Same-store sales in the company’s Americas region gained 5 percent in the quarter, trailing the average estimate for a 6.2 percent increase, according to Consensus Metrix.

The shares fell 3.3 percent to $74.76 at 4:10 p.m. in late trading in New York. Starbucks slid 1.4 percent this year through today’s close, compared with a 7.9 percent gain for the Standard & Poor’s 500 Index.

Fourth-quarter net income was $587.9 million, or 77 cents a share. Excluding some items, profit was 74 cents a share, matching estimates.

In the fourth quarter a year earlier, Starbucks posted a loss of $1.23 billion, or $1.64 a share, as it paid about $2.78 billion to resolve a dispute with Kraft Foods over its packaged-coffee business.

The company forecast fiscal 2015 profit excluding certain items of as much as $3.13 a share. Analysts estimate $3.16, on average.

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Starbucks Corp., the world's biggest coffee-shop chain, posted fiscal fourth-quarter revenue that trailed analysts' estimates as increased competition for breakfast diners' dollars hurt U.S. sales.
Starbucks, earnings, coffee, breakfast
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2014-46-30
Thursday, 30 Oct 2014 04:46 PM
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