Starbucks (NASDAQ: SBUX) topped market expectations for revenue and earnings in the third quarter of 2019 and raised its full-year guidance, sending the stock soaring 5.6% in aftermarket hours on Thursday.
Consolidated revenues of $6.8 billion was up 8% from the same period last year, and ahead of estimates of $6.6 billion.
On a GAAP basis, net earnings attributable to Starbucks rose 61% year-over-year to $1.3 billion while EPS grew 84% to $1.12. Adjusted EPS grew 26% to $0.78, beating forecasts of $0.72.
Global comparable store sales increased 6%, driven by a 3% increase in average ticket and a 3% increase in comparable transactions. US comp sales grew 7% while China comp sales rose 6%.
Net revenues in the Americas segment grew 11% year-over-year to $4.7 billion, mainly driven by 7% growth in comparable store sales and 4% store growth. In the China/Asia Pacific segment, revenues grew 9% to $1.3 billion, helped by 12% store growth, and a 5% increase in comparable store sales.
Net revenues for the EMEA segment fell 11% to $231.7 million due to the conversion of the France and Netherlands retail businesses to fully licensed operations as well as the closure of certain company-operated stores. Revenues in the Channel Development segment dropped 6% to $533.3 million, mainly due to licensing the CPG and foodservice businesses to Nestle.
The company opened 442 net new stores, yielding 30,626 stores at the end of the quarter, a 7% increase from last year. Around one-third of net new store openings were in China and 48% were in other international markets. The company expects to open approx. 2,000 net new Starbucks stores globally during fiscal year 2019.
For fiscal year 2019, Starbucks expects revenue growth of around 7% with global comparable store sales growth of about 4%. The company raised its earnings guidance and now expects GAAP EPS to be $2.86 to $2.88 and adjusted EPS to be $2.80 to $2.82. This compares to the previous outlook ranges for GAAP EPS of $2.40-2.44 and adjusted EPS of $2.75-2.79.
Starbucks declared a cash dividend of $0.36 per share, payable on August 23, 2019, to shareholders of record as of August 8, 2019.
Listen to on-demand earnings calls and hear how management responds to analysts’ questions
Most Popular
CCL Earnings: Carnival Corp. Q4 2024 revenue rises 10%
Carnival Corporation & plc. (NYSE: CCL) Friday reported strong revenue growth for the fourth quarter of 2024. The cruise line operator reported a profit for Q4, compared to a loss
Key metrics from Nike’s (NKE) Q2 2025 earnings results
NIKE, Inc. (NYSE: NKE) reported total revenues of $12.4 billion for the second quarter of 2025, down 8% on a reported basis and down 9% on a currency-neutral basis. Net
FDX Earnings: FedEx Q2 2025 adjusted profit increases; revenue dips
Cargo giant FedEx Corporation (NYSE: FDX), which completed an organizational restructuring recently, announced financial results for the second quarter of 2025. Second-quarter earnings, excluding one-off items, were $4.05 per share,
Comments
Comments are closed.