2017.11.0222:59:00UTC+00Starbucks Trims Profit Forecast as Quarterly Sales Disappoint

Starbucks Corp. lowered its profit outlook as it reported quarterly sales that missed estimates, affected by increasing competition.

The disappointing quarterly results, which usually topped estimates, causing its shares to fall 3.4 percent in late-hours trading.

Disruptions from Hurricanes Harvey and Irma hurt same-store sales at over 1, 000 cafes in the U.S., which still represents the lion's share of the company's operating income. U.S. cafe sales fell 2 percent for the quarter. Not taking into consideration the impact of hurricanes, the sales would have risen 3 percent- close to estimate by analysts.

The coffee chain reduced its long-term earnings outlook to growth of 1.2 percent or higher per share from its preceding projection for growth of 15 percent to 20 percent.

Revenue for the fourth quarter of the fiscal year failed to meet estimates by Wall Street after sales at global cafes increased 2 percent, lower than the average estimate of 3.2 percent by Consensus Metrix.

Starbucks, currently undergoing cost cutting measures, streamlining menus and divesting some businesses, also announced a transaction in which it will sell its Tazo tea brand to Uniliver Plc for $384 million.