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Starbucks Misses Q4 Sales Estimates, Sells Tazo To Unilever For $384 Million

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Starbucks Misses Q4 Sales Estimates, Sells Tazo To Unilever For $384 Million
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Starbucks Corporation (NASDAQ: SBUX) shares fell over 6 percent after reporting a slight fourth-quarter sales miss.

The coffee giant reported fourth-quarter adjusted EPS of 55 cents, falling in line with analyst estimates. Sales came in $100 million short of estimates at $5.7 billion.

"Today, Starbucks reported another quarter – and year – of strong performance, with each of our business segments around the world contributing to record results,” said CEO Kevin Johnson. “Food, beverage and digital innovation are bringing customers into our stores at the same time as ongoing operational improvements are enabling us to drive increased throughput - particularly in our busiest stores at peak - and deliver a further elevated Starbucks Experience to our customers.”

Starbucks also announced it entered into a definitive agreement with Unilever plc (ADR) (NYSE: UL) to sell its Tazo tea brand for $384 million, leading the company to a single tea brand strategy with its premium Teavana brand.

Q4 Highlights

  • Starbucks announced a 20 percent quarterly dividend raise, from 25 cents to 30 cents
  • $15 billion committed to return to shareholders within three years
  • Global and US comps up 2 percent

Click here for the full results.

Posted-In: Kevin JohnsonEarnings News After-Hours Center Movers Best of Benzinga

 

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