After a strong spring, chain’s afternoon business weakened into July
Starbucks Corp.’s U.S. same-store sales increased 5 percent in the company’s fiscal third quarter ended July 2, as customers bought more lunch and spent more on the chain’s beverages.
But those sales slowed through the quarter and into July, prompting worries among analysts and investors that the chain is either overbuilt or that competitors like McDonald’s Corp. are taking its business.
The company’s sales caution sent Starbucks’ stock down more than 7 percent in morning trading on Friday.
“Today’s challenging retail and consumer environments, compounded by headwinds related to the retail disruption underway, has us taking the slightly more cautious view as we enter” the fourth quarter, CEO Kevin Johnson said on the company’s earnings cal...
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