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Starbucks Corp. (SBUX) - Get Starbucks Corporation Report  stock fluctuated in after-hours trading after it missed Wall Street's bold sales expectation. 

After the market close on Thursday, July 27, the coffee shop operator reported third-quarter earnings of 55 cents a share on revenue of $5.67 billion, compared to Wall Street's estimates for earnings of 55 cents a share on revenue of $5.76 billion.

In the U.S., Starbucks' same-store sales grew 5% in the period ended July 2. The company's mobile-and-pay orders rose to 9% of total transactions.

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"Despite delivering industry leading performance, today's challenging retail environment has me taking a slightly cautious outlook for Q4," Starbucks CEO Kevin Johnson said on an earnings call with analysts.

Shares of Starbucks plunged as much as 7% to $55.60 on Friday.

Starbucks CFO Scott Maw said on the call that the company now expects full-year revenue to grow in the "low end" of 8% to 10%, comparable store sales to rise 3% to 4% and earnings per share to rise 12% to 13%.

In its earnings release, Starbucks announced it would close all of its 379 struggling Teavana tea shops. The coffee king acquired the chain in 2012 for an astronomical $620 million. As TheStreet pointed out, the closures come as no surprise to anyone familiar with Starbucks' history of acquisitions.

"Tea is a large, fast-growing market," Johnson said on the call. "We have big plans for tea, but as we shared on our last call, many of our mall-based Teavana stores has been underperforming."

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Johnson took over as CEO in April, from his prior position as chief operating officer. Johnson replaced Howard Schultz, now executive chairman, who served as the CEO from 1987 to 2000 and then again from 2008 until his April departure.

Starbucks CEO Kevin Johnson.

When he took the reins from Schultz, Johnson also took on one of Starbucks' biggest challenges to date - how to reduce the congestion in its coffee shops from an increase in mobile orders coupled with complicated in-store orders. As TheStreet recently observed, Johnson seems to be tackling the problem fairly well by hiring additional staff for its high-traffic stores and by launching what the company calls the "dom" - a tablet-based device that better tracks mobile orders and sends mobile alert to customers when their orders are complete.

On today's call, the company said the "dom" is now at 1,000 of its busiest Starbucks stores.

This morning, Starbucks announced that it will acquire the remaining 50% stake in its East China operations for $1.3 billion from its joint venture partners Uni-President Enterprises Corp. and President Chain Store Corp. The transaction gives Starbucks complete control of its 1,300 stores in the Shanghai, Jiangsu and Zhejiang provinces.

Maw said Starbucks expects its East China transaction to add $1 billion in revenue for the full year.

Starbucks is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells SBUX? Learn more now.

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