Not totally satisfied with your recent experiences at Starbucks? You’re not alone.
Shares of coffee chain Starbucks (SBUX) fell as much as 4% in early trading Friday, after an earnings report that missed expectations.
Starbucks revealed that same-store sales, a key measure that looks at how stores open for at least 12 months are doing, grew 2%, lower than the 3.2% analysts had anticipated during the last quarter, according to Consensus Metrix.
The fall off was due in part to hurricanes Harvey and Irma, which led Starbucks to close 1,100 locations for a period. Stripping out the effect of the hurricanes, same-store sales still came in below expectations, growing 3% as fewer than expected customers visited Starbucks locations partly thanks to slow service.
The company has cited an influx of mobile orders and a complex menu as the reasons behind the slowdown.
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Investors also appeared concerned about about Asia, which has been a growth driver in recent years. Same store sales there grew 2% against an expected 3.2%.
At the same time, Starbucks announced plans to sell its Tazo brand of drinks and teas to Unilever for $384 million. Starbucks said it plans to focus on its other tea brand, Teavana, which recently announced plans to shutter all its physical properties.
“We continue to see significant growth in our tea business through our Teavana brand, and this transition supports our strategy to elevate the premium tea experience for our customers,” said Kevin Johnson, CEO of Starbucks in a statement.
Shares rebounded slightly later Friday, down about 2%.
The company posted earnings per share of 54 cents and sales of $5.7 billion. Wall Street had expected earnings per share of 55 cents and sales of $5.8 billion for the quarter according to Thomson Reuters.