Editors' pick: Originally published Jan. 26.
Starbucks (SBUX) - Get Starbucks Corporation Reportmay have let Wall Street down Thursday evening with its latest quarterly U.S. same-store sales and guidance, but at least the company's promising (and arguably very important) new store concept continues to crush it.
Same-store sales at Starbucks' Seattle-based Reserve Roastery & Tasting Room popped 18% during the holiday quarter, following up on a stellar 24% increase for the quarter ended Oct. 2. The average transaction size at the store was four times that of a typical Starbucks store, executives told analysts on a Thursday evening conference call.
Wall Street didn't seem to care, however.
Starbucks shares fell as much as 3.7% afterhours to $56.35 as U.S. same-store sales rose 3% for the first quarter ended Jan. 1, missing analysts forecasts for a 4% gain. The company expects fiscal second quarter adjusted earnings between 44 cents and 45 cents a share. Wall Street was projecting earnings of 46 cents a share.
The original roastery and tasting room in Seattle opened its doors in December 2014. At a massive 15,000 square feet, the store features a range of higher-end, small-lot coffees from around the world, a more expansive menu of food than that found at a normal Starbucks and a giant coffee roasting facility.
What Starbucks Chairman and CEO Howard Schultz -- who will oversee the roasteries closely once stepping aside as CEO on Apr. 3 -- has planned next for the new concept is sort of mind-blowing.
A 30,000 square foot store will open in Shanghai in late 2017. Some of the building's features will include four entrances, baked goods by the recently acquired Princi, and a "world" of Teavana products that also happen to offer loose leaf tea scooping.
Then sometime next year, Starbucks' will swing open the doors to a 20,000 square foot roastery in New York City's Meatpacking District. It will be two levels, feature an extended bar that sells and explains high-end coffee, and another 45 foot bar dedicated to spirits and mixology.
And finally, Starbucks still has plans to unveil a multi-level roastery in Tokyo in 2018, and another one in Europe in 2019 in a city to be announced soon.
Schultz sees as many as 20 to 30 roasteries eventually in operation around the world.
Here is what these stores look like since you have unlikely ever visited one.