Something very out of body happened at Starbucks in its most recent quarter.
In spite of a host of new drinks and foods and a growing mobile presence, Starbucks (SBUX) reported Thursday that customer traffic in the U.S. fell 1% in the fiscal fourth quarter. Same-store sales in the U.S. rose 4%, matching a disappointing 4% growth rate in the third quarter. Starbucks overall same-store sales for the fourth quarter rose 4% for the second straight three month period, and came in below Wall Street estimates for a 4.8% increase. Prior to the third quarter, Starbucks had notched an impressive 25 quarter stretch of 5% same-store sales growth or greater.
Net sales rose 16% from the prior year to $5.71 billion, surpassing analyst forecasts for $5.69 billion. Earnings tallied 56 cents a share, narrowly surpassing estimates for 55 cents a share.
"Starbucks U.S. same-store sales peaked about this same time last year; and investors have grown cautious as Starbucks now laps these tough sales comparisons," wrote analysts at Credit Suisse ahead of the results. Shares of Starbucks are down about 14% so far this year in large part because of fear of slowing sales in the U.S.
The disappointment for Starbucks was worse outside the U.S.
