Starbucks shares whipsawed after the bell Thursday after the company posted weaker-than-expected third-quarter earnings and said that it plans to close all of its Teavana retail stores.
The company posted earnings of 55 cents per share on $5.66 billion in revenue. The coffee giant is expected to report earnings of 55 cents per share on $5.75 billion in revenue, according to Thomson Reuters estimates.
In addition, Starbucks said same-store sales rose 4 percent during the quarter. Analysts had anticipated global same-store sales growth of 4.9 percent for the quarter, according to StreetAccount.
This is the third quarter in a row that Starbucks has posted weaker-than-expected same-store sales.
Previously, part of these lackluster same-store sales came from congestion at hand-off counters that caused incoming customers to leave without making a purchase, despite lines at the register being short. In late April, CEO Kevin Johnson said that the company had “turned the corner’ on this issue.
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