$SBUX Disappoints, Shares Fall in the After Hours

It isn’t a disaster. But one needs to ponder how far SBUX can go, when in every city in America there is a sundry of superior, local, coffee shops springing up almost on a daily basis. We are living through the peak coffee days. BEHOLD.

“Starbucks record Q3 performance, highlighted by strong 7% comp growth and record revenues and profits in China and 18% year-over-year growth in our Starbucks Rewards loyalty program, demonstrates the strength and resilience of the Starbucks brand and business around the world,” said Starbucks chairman and ceo Howard Schultz. “As we enter Q4 and approach fiscal 2017, we have clear line of sight to returning our U.S. business to historic levels of comp sales growth which had been at or above 5% for the 25 consecutive quarters prior to Q3.”

“Starbucks third quarter results once again reflect strong revenue and profit growth and represent the first non-holiday quarter in which our operating income exceeded $1 billion,” said Scott Maw, cfo. “We are confident in the correctness of the str$SBUXategic, operational and digital moves we outlined today and remain steadfast in our commitment to deliver significant, profitable growth over the long term.”

SBUX met earnings expectations, but missed on revenues by $100 million.

Reports Q3 (Jun) earnings of $0.49 per share, in-line with the Capital IQ Consensus of $0.49; revenues rose 7.3% year/year to $5.24 bln vs the $5.34 bln Capital IQ Consensus.
Comp Store Sales rise 4% globally (Expectations were for approx 5.2-5.6%)
Non-GAAP operating margin expanded 30 basis points over Q3 FY15 non-GAAP, to a Q3 record 19.8%
Co issues in-line guidance for Q4, sees EPS of $0.54-0.55 vs. $0.55 Capital IQ Consensus Estimate.
Co issues in-line guidance for FY16, sees EPS of $1.88-1.89 vs. $1.89 Capital IQ Consensus Estimate.
Full year consolidated revenue growth now expected to be approximately 10% on a 52 week basis (from 10%+), the 53rd week expected to add approximately 2%
Full year global comparable store sales growth now expected to be mid-single digits (from somewhat above mid-single digits)
Now expecting approximately 1,900 net new store openings in the fiscal year
FY16 operating margin is expected to increase slightly versus prior year:
Americas: now expected to increase slightly over prior year (from moderate improvement)
China/Asia Pacific: now expected to increase slightly over prior year (from roughly flat)
EMEA: now expected to be flat to prior year (from approaching 15%)
Channel Development: now expect strong expansion versus prior year (from moderate improvement)

The stock is off 5% in the after hours.