Starbucks expressed confidence on Thursday that an overhaul of its rewards program will drive up sales over the long term, but warned that the transition could be bumpy.
The comments came after the company reported sales growth for the first three months of the year that fell short of Wall Street expectations. The Seattle-based chain said global comparable sales rose 6 percent, including a 7 percent increase in its flagship US market.
For the first three months of the year, sales rose 3 percent at established locations in Asia. Sales for the unit including Europe, the Middle East and Africa rose 1 percent. Taken together, global sales rose 6 percent in the period. Total revenue, which factors in new store openings, rose 9 percent to USD4.99 billion. That was short of the $5.03 billion analysts expected, according to FactSet. Profit for the quarter rose 16 percent to USD575.1 million, or 39 cents per share, in line with expectations.