Starbucks Earnings: What's Wall Street Saying?

NEW YORK (TheStreet) -- Starbucks (SBUX) reported on Thursday fiscal third-quarter earnings of 67 cents a share -- a penny ahead of consensus estimates. Revenue rose 11.2% to $4.15 billion, as the Seattle-based coffee chain continues to open locations across the world and expand its product offering in stores to include tea, breakfast and lunch foods, and cold beverages.

The company said comparable store sales rose 6% overall -- ahead of consensus estimates -- with 4% of growth coming from more traffic and 2% from higher transactions. U.S. stores specifically experienced a 7% jump in comparable-store sales. Starbucks attributed two percentage points of comp growth to the "strong progress" the company is making in selling food.

Read More: Starbucks Store Makeovers Are Boosting Profit Margins


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However, shares were falling 2% to $78.83 as of 10:30 a.m. on Friday. Investors were not thrilled with management's caution that earnings-per-share growth for fiscal 2015 would come in at the low end of its expected range of 15% to 20% due to fewer coffee commodity cost tailwinds and continued investments. Starbucks said it expected revenue growth of 10% or greater for fiscal 2015; global comparable sales growth in the "mid-single digits;" an additional 1,600 net new stores globally; and EPS growth between 15-20% over fiscal 2014.

Read More: Starbucks Q3 Earnings Live Blog Recap

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