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Starbucks Corp., the world's biggest coffee- shop operator, forecast first-quarter profit that trailed analysts' estimates as costs for employees and mobile technology increase.
Earnings in the quarter through December will be 44 cents to 45 cents a share, the Seattle-based company said in a statement Thursday. Analysts estimated 47 cents, on average.
Chief Executive Howard Schultz has been focused on improving the chain's technology to speed up service and attract more customers. The company rolled out mobile ordering in the U.S. in September and introduced it in Canada this month. It also has recently been spending more money on employees, offering college-tuition payment, as well as a wage boost last year.
"We know that these investments are paying off, they're critical to the business," Chief Financial Officer Scott Maw said in an interview.
The company will increase its spending on employees and technology next year by between $100 million and $125 million, he said. The costs totaled about $145 million in fiscal 2015.
The shares fell 2.8 percent to $60.75 at 4:34 p.m. in late trading in New York. Through Thursday's close, Starbucks had gained 52 percent this year.
Starbucks said fourth-quarter profit was 43 cents a share, excluding some items, matching analysts' average estimate. Net income rose 11 percent to $652.5 million, and sales increased 18 percent to $4.91 billion, just beating analysts' $4.9 billion average projection.
Starbucks has been trying to improve the quality and selection of its food to help increase sales domestically. It recently introduced seasonal items, such as apple pound cake, and new lunch items including a peanut butter and jelly box, as well as a barbecue beef brisket sandwich.
The moves helped same-store sales in the Americas region climb 8 percent in the quarter ended Sept. 27. Analysts estimated a 6.9 percent gain, according to Consensus Metrix. Global same-store sales also increased 8 percent, beating the 6.9 percent projection.
Declining coffee prices also have been helping Starbucks' profit. Arabica coffee prices have tumbled 28 percent this year as better crop yields are expected from some of the world's biggest growing regions.
Comparable-store sales rose 5 percent in the company's Europe, Middle East and Africa division and increased 6 percent in China and Asia Pacific.
Profit, excluding some items, in the current fiscal year will be $1.87 to $1.89 a share, the company said Thursday. Analysts estimate $1.88.