Coffee giant serves mixed brew in third quarter

Starbucks Corp.’s revenue fell short in the third quarter even as its earnings were in line with expectations.



The company posted $5.24 billion in consolidated net sales for the quarter ended June 26, up 7% over the year-ago period, but below analysts’ expectations of $5.33 billion. The increase was primarily driven by the opening of 1,876 net new stores over the past 12 months and a 4% increase in global comparable store sales.



Revenue for the Americas segment were $3.6 billion, also up 7% over last year. The increase was driven by a 4% increase in same-store sales and incremental revenues from 730 net new store openings over the past 12 months.



Starbucks’ third-quarter adjusted earnings grew 17% to 49 cents a share, matching views.



“Starbucks record Q3 performance, highlighted by strong 7% comp growth and record revenues and profits in China and 18% year-over-year growth in our Starbucks Rewards loyalty program, demonstrates the strength and resilience of the Starbucks brand and business around the world,” said Starbucks chairman and CEO Howard Schultz.



Starbuck said its loyalty program now claims over 12 million active members in the United States and Canada.



Looking ahead, Schultz said the company has a “clear line of sight to returning our U.S. business to historic levels of comp sales growth, which had been at or above 5% for the 25 consecutive quarters prior to Q3.”