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
United Parcel Service (UPS) seems on track to regain lost strength
Cargo giant United Parcel Service, Inc. (NYSE: UPS) ended fiscal 2023 on a weak note, reporting lower revenues and profit for the fourth quarter. The company experienced a slowdown post-pandemic
IPO Alert: What to look for when Boundless Bio goes public
Boundless Bio is preparing to debut on the Nasdaq stock market this week, and become the latest addition to the list of biotech firms that have launched IPOs this year.
Nike (NKE) bets on innovation and partnerships to return to high growth
Sneaker giant Nike, Inc. (NYSE: NKE) has been going through a rough patch for some time, with sales coming under pressure from weak demand and rising competition. Post-pandemic, the company
Comments
Comments are closed.