Starbucks -3% after forecasting modest same-store sales growth

|About: Starbucks Corporation (SBUX)|By:, SA News Editor

Starbucks (NASDAQ:SBUX) -3.1% after-hours in response to the company's forecast for global same-store sales growth of 3%-4% annually in the long term, roughly in line with a forecast that estimates sales growth to be at the lower end of a 3%-5% range this year.

SBUX trims its outlook for long-term annual EPS growth to at least 10%, after it had re-set the forecast in November 2017 to 12% or greater, which was down from a previous forecast of 15%-20% growth; it expects long-term consolidated revenue growth of 7%-9%, in line with its previous target.

The company reaffirms in-line guidance for FY 2019, seeing EPS of $2.61-$2.66 vs. $2.65 analyst consensus estimate on revenue growth of 5%-7%, implying $26B-$26.5B vs. $26.1B consensus.

SBUX also said earlier today it would raise its store footprint in China to 6,000 stores across 230 cities over the next four years, up from 3,600 stores in 150 cities, and unveiled plans to expand coffee delivery across the U.S. via a partnership with Uber Eats.

Subscribe for full text news in your inbox