Starbucks Blames Paris Terror Attacks for Hurting Sales
- Coffee chain's growth overseas falters, missing estimates
- Investors punish stock that's ‘priced for perfection’
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Starbucks Corp.’s second-quarter profit forecast missed analysts’ estimates following a sales-growth slowdown overseas, which the company blamed in part on the Paris terrorist attacks.
Though sales in Starbucks’ home region increased faster than expected last quarter, the pace slackened in Asia and Europe, according to a statement Thursday. The Seattle-based coffee chain is confronting an increasingly shaky global economy, which may make it hard to maintain one of the restaurant industry’s best stock rallies. Starbucks’ shares climbed 46 percent last year, the seventh straight year of gains.