Shares of the company, however, rose more than 2% in extended trading, as its China business showed signs of recovery.
Starbucks has seen a steady deceleration in the pace of sales growth over the past few quarters, driven by volatility in demand in both the U.S. and China markets due to uneven consumer spending and growing competition.
While the company saw a strong start to the quarter with a 5.9% rise in traffic at its U.S. stores in October, the momentum quickly faded with November and December posting declines of 5.1% and 4.5%, respectively, brokerage Wells Fargo noted citing Placer.ai data.
Starbucks is also among a handful of global brands that have come under pressure due to the Israel-Hamas war that broke out on Oct. 7, with consumers across several markets launching protests and boycott campaigns against the company over its stance on the conflict.
In North America, comparable sales increased 5% in the fiscal first quarter, slightly lower than analysts' expectations of a 5.12% rise, according to LSEG data.
Meanwhile, comparable sales in China rose 10% in the quarter, improving from a 5% rise seen in the preceding three-month period, signaling Starbucks was faring well thanks to rapid growth in coffee consumption in the country.
Still, its international segment posted only a 7% increase in same-store sales, missing analysts' estimate of 12.07% growth, driven by a fall in average ticket — or the average amount spent per order.
Global comparable sales at the world's largest coffeehouse chain climbed 5% in the first quarter, compared with analysts' expectations of a 6.98% rise.
