Even the news that Starbucks (SBUX) profits increased 35 percent for their fourth quarter wasn't enough to get investors excited, as same-store visitor results dampened the news for the company.
For the first time since Starbucks started releasing statistics on same-store visits, they dropped for the first time in the U.S., causing the stock to plunge by 8 percent in after hour trading.
Net income for the quarter increased to $158.5 million, up from $117.3 million the same quarter last year. Sales also increased to $2.44 billion, a 22 percent rise from last year. Earnings per share came in at 21 cents, what the analysts expected.
While same-store sales increased by 5 percent per transaction, the number of customer visits declined by 1 percent ... a first for the company.
Concerns are that the large number of stores may be cannabilizing the company, as well as increased competition from competitors like McDonald's (MCD) could be a factor in less visitors also.
For the fiscal 2007 year, Starbucks added another 2,571 stores, to bring their total around the world to 15,011.
Industry watchers and analysts say the company is "dangerously close to flattening out," which could make the company a high-risk investment.
This is one of the reasons they're trying to find other revenue sources like the music they've been promoting, as they're trying to differentiate in what could become a commodity in the U.S.
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