Starbucks reported fourth quarter earnings after the bell on Thursday.
The coffee giant earned an adjusted $0.55 per share, in line with Wall Street expectations, on revenue of $5.7 billion — just below the expected $5.81 billion.
The company also said it would sell its Tazo tea brand, which it purchased 1999, to Unilever for $384 million.
Shares were down as much as 5.87% after-hours.
)
)
)
Starbucks said US comparable store sales had increased by 2%, not including the impact from two major hurricanes that made landfall during the quarter.
The company’s digital rewards program — My Starbucks Rewards — also posted an 11% increase in members compared to the previous year. In an interview with Business Insider earlier this year, a top Starbucks analyst told Business Insider that the program had seen disappointing growth.
The away-from-home coffee market continues to grow at roughly 5% every year, , with Starbucks barely outpacing that growth. Still, away-from-home coffee makes up just 30% of all coffee consumption, according to data from the National Coffee Association, so there’s plenty more room for the segment to grow.
Prior to earnings, 26 of the 34 analysts surveyed by Bloomberg rate Starbucks’ stock has “buy,” while eight give it a “hold” recommendation.
Shares of Starbucks are down 0.38% so far this year.