Starbucks lowers forecast on global economic weakness |
| Reuters - Jul 26, 2012 |
Starbucks Corp cut its outlook for the current quarter and posted profit that missed Wall Street expectations, citing the economic weakness around the world, sending shares down almost 9 percent.
The world's biggest coffee chain began seeing traffic in the United States, its largest market, slow in June, chief executive Howard Schultz said in an interview. The company has been struggling in Europe for some time.
"We're dealing with significant global economic and consumer challenges," Schultz said.
The news followed disappointing results by restaurant chains Chipotle Mexican Grill and McDonald's Corp and reinforced concerns of how much U.S. consumers might be cutting back on discretionary spending.
Starbucks said it now expects earnings for the current fiscal fourth quarter to be 44 cents to 45 cents a share, below the average analyst forecast of 48 cents a share. The company in April forecast fourth-quarter profit of 46 cents to 48 cents a share.
Read Full Article from Reuters
- Posted: 2012-07-26 16:58:52
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