Investors made it clear on Friday they aren't pleased with Starbucks Corporation SBUX's fiscal third-quarter earnings report based on the stock's more than 9 percent decline.
Naturally, Starbucks CEO Kevin Johnson disagrees and exclaimed during a CNBC interview he is "proud" of the report and hinted investors are getting it wrong.
One of the highlights of the earnings report was the restaurant chain's ability to post a 5 percent comp growth in the U.S. market, which also happens to be the largest market. On top of that the company saw a 1 percent growth in transaction - both of which are metrics no other company the size of Starbucks' can rival.
"It was a strong performance and a great result," Johnson emphasized.
Meanwhile, Starbucks did see some deceleration during its fiscal third quarter and coupled with industry data in the away-from-home food and beverage category, which prompted management to take a "cautionary posture" in its fiscal fourth-quarter guidance, Johnson added. But the company is just three weeks into a 13-week long quarter and "a lot can happen" over the coming 10 weeks.
Finally, investors may also be missing out on another big story: China, the executive concluded. Specifically, the 7 percent comp growth in the country shows that it should be considered a "major growth engine" that will "fuel the company forward."
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