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Starbucks earnings in-line with Street estimates, closing all Teavana stores

      • EPS: 55 cents, in-line with estimates
      • Revenue: $5.66 billion, versus forecast of $5.75 billion
      • Same-store sales: 4 percent increase, versus 4.9 percent rise forecast by Wall Street

      Starbucks shares declined in aftermarket trading Thursday after the company posted weaker-than-expected third-quarter revenue and lowered its full-year 2017 forecast.

      The company posted earnings of 55 cents per share on $5.66 billion in revenue. The coffee giant is expected to report earnings of 55 cents per share on $5.75 billion in revenue, according to Thomson Reuters estimates.

      Shares of the coffee giant fell more than 6 percent following the report.

      Despite posting its highest U.S. same-store sales in five quarters, Starbucks CFO Scott Maw said the company is "a bit more cautious" about the current quarter amid broader pressure on the slumping retail sector.

      Starbucks said that it now expects to see earnings per share for full-year 2017 to be between $2.05 and $2.06. Previously, the company forecast EPS in the range of $2.08 to $2.12.

      In addition, the company said it expects revenue growth will be on the lower end of its previous range of 8 percent to 10 percent.

      Starbucks said same-store sales rose 4 percent during the quarter. Analysts had anticipated global same-store sales growth of 4.9 percent for the quarter, according to StreetAccount.

      This is the third quarter in a row that Starbucks has posted weaker-than-expected same-store sales.

      Same-store sales growth in the U.S. rose 5 percent, buoyed by the company's "Instagramable" Unicorn Frappuccino. However, the drink's magic wasn't sustainable for Starbucks.

      While the brand rolled out several new drinks during the quarter, including the Midnight Mint Mocha Frappuccino, an Ombre Pink Drink and the Iced Coconutmilk Mocha Macchiato, none elicited the same frenzy as the limited-time Unicorn.

      "The slowdown included a lower-than-expected lift in non-discounted Frappuccino beverages following Happy Hour as well as somewhat lower-than-expected sales of other core beverages during the period," the company said.

      The new Pink Drink did help drive sales of Starbucks "refresher" drinks, said John Culver, group president of global retail at Starbucks.

      Additionally, the coffee giant said last quarter that many of its Teavana mall stores were a drag on results, with as many as 350 of these stores hurt by reduced foot traffic. Maw said in April that the company had begun a review process to "take clear action" to improve its Teavana portfolio.

      "Following a strategic review of the Teavana store business, the company concluded that despite efforts to reverse the trend through creative merchandising and new store designs, the underperformance was likely to continue," the company said in a statement.

      Starbucks will shutter all 379 Teavana locations by spring 2018, the company said.

      The company said Thursday that it will purchase the remaining 50 percent share of its East China business. The deal will cost the company about $1.3 billion and will give Starbucks ownership of 1,300 stores in the region.

      In a separate deal, the company is set to sell its 50 percent stake in its Taiwanese joint venture for about $175 million. This joint venture operates about 410 Starbucks restaurants.

      Both deals are set to close by early 2018.

      Starbucks CEO Kevin Johnson will appear on CNBC at 9 a.m. ET on Friday.