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.
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