Starbucks last night reported stagnant store traffic at established US cafes for the second quarter in a row.
This stirred up concerns about intense competition from upscale coffee houses as well as fast-food chains and convenience stores.
Shares in the world's biggest coffee chain fell 1.9% in extended hours after stepped-up promotions failed to lure more US customers, who drive the lion's share of Starbucks profits.
Same-store sales for the US-dominated Americas region rose 2% for the second quarter ended April 1.
Increased spending per visit drove the same-store sales rise since customer visits, referred to as traffic, were flat.
Starbucks' home market of the US is its largest, with more than 14,000 stores. During the quarter, US cafes offered 15% off new blonde espresso drinks and half-price espresso drinks during afternoon Happy Hour.
But China is Starbucks' biggest growth driver.
Same-store sales in that 3,200-store market were up 4% in the second quarter, compared to gains of 6% and 8% in the two previous quarters.
Executives attributed the softer results in the latest quarter to a shift in the timing of Lunar New Year. They said business remains strong, but declined to give traffic results.
Starbucks' global traffic was down 1% for the quarter, with the Europe, Middle East and Africa region falling 4%.
The company's said its total revenue rose almost 14% to $6 billion.
Starbucks' quarterly net income was $660m, or 47 cents per share, compared with $653m, or 45 cents per share, a year ago. Excluding items, profit of 53 cents a share matched expectations.
The results come as Starbucks is working to limit or avoid reputational damage from the arrests of two black men in a Philadelphia cafe two weeks ago. A bystander video of the incident went viral, fueling protests and calls to boycott the chain.
Starbucks apologised for the incident, which was set in motion when a manager called police to report the two men who were waiting for a friend and had not made purchases.
It plans to close 8,000 company-owned cafes on the afternoon of May 29 for racial tolerance training.
Its chief executive Kevin Johnson said on a post-earnings call that the incident has not had an impact on US same-store sales.
