Reuters Starbucks39; store operation improvements helped the coffee chain meet Wall Street expectations for quarterly profit, even as its global sales declined on persistent weakness in consumer spending in its top markets of U.S. and China.
The company39;s shares, down 22 this year, were up 5 in extended trading after executives reaffirmed its annual forecasts.
Starbucks this year rolled out its Siren System plan, which included updating its equipment to increase the pace of service at its stores, as the company turns to discounts and promotions to appeal to costconscious consumers.
The system was deployed across its U.S. company operated stores in the reported quarter, and Starbucks plans to have the equipment, such as a refit to its espresso machines, in less than 10 of its global stores by the end of year.
We are focused on what we can control in a consumer environment that can be best described as complex, CEO Laxman Narasimhan said on a postearnings call.
Starbucks39; operating margin fell 70 basis points in the third quarter, a sequentially smaller drop. Profit of 93 cents per share was in line with LSEG estimates.
Quite possibly, investors are viewing this as not as bad as was feared potentially. We39;re kind of impressed that they were able to open 526 new stores in the quarter, said Greg Halter, director of research at Carnegie Investment Counsel.
U.S. fastfood chains have rolled out limited deals and offers to bring back to stores thrifty consumers…