Starbucks Corp disappointed Wall Street with fiscal 2010 and 2011 profit forecasts on Wednesday that matched or lagged Wall Street's expectations, sending its shares down more than 2 percent.
The Seattle-based chain, which has just completed a restructuring, raised its fiscal 2010 earnings target to $1.22 to $1.23 per share, from $1.19 to $1.22 per share previously. Analysts on average were looking for a profit of $1.23 for the fiscal year ending September 2010.
It now expects earnings of $1.36 to $1.41 per share in fiscal 2011, versus Wall Street's average projection of $1.41.
After slashing costs and closing failing stores, Starbucks has returned to building. It plans to add 100 net new stores in the United States and 200 internationally during this fiscal year, which ends in September. For 2011 it plans to add 500 net new stores, mostly overseas.
The company also wants to build Via instant brew and Seattle's Best Coffee into billion-dollar businesses. Those operations should help revenue, but margins will stay low for now as Starbucks spends money on Via advertising.
Via, which debuted in September 2009, is on track for $100 million in sales in its first year.
Starbucks reported a quarterly profit that matched the average analyst view. Net income for the fiscal third quarter was $207.9 million or 27 cents per share, versus $151.5 million, or 20 cents per share, a year ago.
It earned 29 cents per share excluding charges in the latest quarter, matching analysts' estimates, according to Thomson Reuters I/B/E/S.
Net revenue rose 9 percent to $2.61 billion. Sales at restaurants open at least 13 months -- a key gauge of retail health -- rose 9 percent, driven by a 6 percent increase in traffic and a 3 percent rise in spending per visit.
Starbucks shares slipped to $24.62 in extended trade after closing down 2.3 percent at $25.17 on the Nasdaq. Shares in Starbucks are up just over 9 percent so far this year.
(Reporting by Lisa Baertlein. Editing by Robert MacMillan)