Starbucks Slips as Lingering China Weakness Hits Results
- Outgoing CEO Howard Schultz predicts China rebound this year
- US performance remains strong as higher menu prices stick
A Starbucks Corp. coffee shop in Shanghai, China.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
Starbucks Corp. reported profit and comparable sales that trailed Wall Street’s expectations as weakness in China weighed on results, sending shares down in late trading. Executives reaffirmed confidence in the country and predicted a recovery there this year.
Comparable sales of 5% in the quarter ended Jan. 1 were below the average estimate for 6.8% growth compiled by Bloomberg, with the Seattle-based company saying China “materially impacted” performance.