Executive Summary

• Starbucks reported 3Q16 EPS of $0.49, in line with the consensus estimate. However, its total same-store sales and total revenues missed analyst’s’ expectations.
• Full-year guidance calls for EPS of $1.88–$-1.89 per share, consistent with prior guidance. Sales guidance was lowered 10% from slightly above mid-single digits10%+ previously.
• Bright spots in the business includes a steady growth inof loyalty program enrollment and a strong, 7% comps  in China.