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LOS ANGELES, July 27 (Reuters) - Starbucks Corp on Thursday posted lower quarterly profit, tempered expectations for the current quarter amid softness in the U.S. retail and restaurant industries, and announced plans to close all 379 of its Teavana stores.
Net income fell to $691.6 million, or 47 cents per share, for the third quarter ended July 2. That was down from $754.1 million, or 51 cents per share, in the year earlier quarter.
Sales growth: Starbucks is growing sales at stores that have been open for more than 13 months, but not fast enough for investors. The company announced a 4% rise in this metric, known as comparable store sales. Wall Street was expecting closer to 5%. In general, stores based in China and the U.S. performed better than the company average.
Mobile ordering: Starbucks continues to see increases in the number of users who are using their mobile devices to get food and beverages. In the latest quarter, mobile order-and-pay accounted for 9% of all transactions in the U.S., while mobile payments accounted for 30%. Customers who use their smartphones to get Starbucks tend to be more loyal and get their drinks more quickly. However, the company is still working out the kinks of its mobile-ordering system to avoid store congestion. And one analyst is concerned about the rate of growth for Starbucks’ loyalty program.
Teavana: Starbucks acquired Teavana in 2012, but the tea chain’s stores have weighed on results. Starbucks announced Thursday that it would be closing down all 379 Teavana locations.
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