SEATTLE _ Even as Starbucks touted record first-quarter sales, those sales still fell short of analysts' estimates _ and more worryingly, the company continued to see a slowdown in sales.
Sales at Starbucks stores worldwide open at least a year grew only 3 percent in the quarter ended Jan. 1, a sharp falloff from 8 percent growth a year ago and lower than the 3.8 percent growth some analysts had expected.
Growth in the U.S., too, was slow at 3 percent.
Sales reached $5.73 billion _ a record for the first quarter, though short of the $5.83 billion analysts had expected, according to a Zacks consensus estimate.
The adjusted earnings per share of 52 cents met Wall Street expectations. Without adjusting for certain items, earnings per share came to 51 cents.
"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," Scott Maw, the company's chief financial officer, said in a news release.
The restaurant industry as a whole is facing challenges, with sales weak "despite a sustained wave of positive economic news in the U.S.," according to a recent research note from Barclays.
Starbucks shares were down 2.5 percent in after-hours trading after the release of the earnings report.
