Teavana Holdings, Inc.

Starbucks says Unicorn Frappuccino shows its digital savvy

Starbucks is pointing to the Unicorn Frappuccino as an example of its digital savvy, and ability to ride out of its sales slump.

The coffee chain reported disappointing U.S. sales growth for the first three months of the year on Thursday as customer traffic stalled, and it tempered its profit forecast for the year. Its shares fell nearly 5 percent in after-hours trading.

But the Seattle-based company cited several changes it's been making to ease the congestion in stores that it said was driving away some customers. Starbucks also said the success of its color-changing Frappuccino — introduced for a limited time last week after the lukewarm quarter ended — proves the...