Starbucks struggles

Starbucks Corp. didn’t get what it ordered last quarter from its biggest growth opportunity: Asia.

Same- store sales in the region rose 2 percent in the quarter ending Oct. 1, short of the 3.2 percent predicted by analysts. The performance contributed to generally sluggish results, sending the company’s shares down as much as 7.5 percent in late trading.

The slow sales reflect a broader problem for the world’s biggest coffee chain. After saturating much of the U. S. with cafes, it needs overseas markets more than ever to maintain growth. While Chinese demand for coffee is still surging, it’s getting harder for the company to find blockbuster opportunities.

The Seattle roaster was also hit by growing pains as the company took charges related to restructuring and refining its operations. Major hurricanes that hit two of the most populous U. S. states also clipped samestore sales growth, the company said.

“We’ve been streamlining the business,” CEO Kevin Johnson said in an interview after the release of results.

Total comparable sales rose 2 percent, short of the estimate of 3.2 percent from Consensus Metrix. After excluding the effects of hurricanes Harvey and Irma — which mauled Texas and Florida and forced Starbucks to close a total of 1,100 locations — samestore sales growth was 3 percent.

Chronicle News Services