By NBC News
Starbucks shares were down 11 percent in midmorning trading Friday after the company posted quarterly results that fell short of Wall Street expectations and cut its outlook for the current quarter, citing the challenging global economy.
Starbucks (SBUX) was down $6 to $46.40, giving up all the stock's gains for the year.
"We are concerned that Starbucks experienced its first earnings disappointment in 3-plus years as operating complexity is increasing," analyst?David Tarantino?of Robert W. Baird?wrote in downgrading the stock.?
The Seattle-based coffee giant said profits rose 19 percent in the latest quarter, as global revenue at cafes open at least a year rose 6 percent.
In June and July, however, the company noted that traffic had slowed amid persistently high unemployment and shaky consumer sentiment.
"Traffic trends are noticeably down in many parts of the U.S.," said Troy Alstead, the company's chief financial officer.
In the European market, where Starbucks is struggling to turn around its business, sales were flat.
"Europe has been a challenge for us all year and continues to be," Alstead said. He noted that the flat sales were an improvement from the previous quarter, however, when the figure slipped 1 percent.
Howard Schultz, Starbucks chairman & CEO, offers insight on the company's earnings miss and new campaign, "Create Jobs in America."
The Associated Press contributed to this story.
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