Starbucks falls after setting cautious guidance on conference call
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Starbucks Corporation (NASDAQ:SBUX) held its earnings conference on Tuesday with a focus from new CEO Laxman Narasimhan and other execs on new plans, including some streamlining of store operations and fresh investments to stoke long-term growth.
Narasimhan said both the UK and Japan stood out in the quarter with double-digit comparable sales growth to nearly match the strong performance in the North America. He also said the China recovery path is likely to be uneven even with comparable sales improving from a year ago. Of note, barista turnover improved in FQ2, which has been a concern of analysts. On the product side, the launch of the Oleato drink in Italy and three U.S. cities was noted to be highly successful and anticipated to be a contributor to comparable sales growth.
In terms of guidance, Starbucks (SBUX) only reaffirmed its prior full-year outlook, which may be a disappointment to shareholders. Near-term uncertainties include potential shifts with consumer behavior. SBUX expects global comparable sales growth to be near the high end of the +7% to +9% range and U.S. comparable sales to be +7% to +9%. Earlier, the coffee chain operator reported total revenue was up 14.5% in FQ2 to $8.7B and global comparable store sales rose 11% to smash the consensus estimate of +7.3%. 
Shares of Starbucks (SBUX) fell 5.50% in postmarket trading to $108.07 following a 0.09% dip during the regular session.
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