Coin Press - Starbucks points to weaker consumer as profit falls

The performance "did not meet our expectations," said Chief Executive Laxman Narasimhan, who also noted a wave of severe weather in the United States as a driver of the tepid results.

"We continue to feel the impact of a more cautious consumer, particularly with our more occasional customer and a deteriorating economic outlook has weighed on customer traffic and impact sales broadly across the industry," Narasimhan said on a conference call with analysts.

Profits were $772.4 million in the quarter ending March 31, down 15 percent from the year-ago period, while revenues fell two percent to $8.6 billion.

Comparable stories in North America fell three percent, while sinking by 11 percent in China.

Chief Financial Officer Rachel Ruggeri said the company had a "comprehensive" plan to right conditions after a "difficult" quarter.

Narasimhan said the chain was putting into service technologies to better inform consumers about the status of online orders.

Starbucks has taken note of a large number of cases where consumers begin digital orders and do not follow through with a transaction.

"Here lies opportunity," said Narasimhan, who aims to improve communication system in particular during the morning rush.

Shares of Starbucks fell about 10 percent in after-hours trading.

Y.Uduike--CPN