Starbucks Corp (NASDAQ: SBUX)
Starbucks on Thursday reported higher-than-anticipated financial results for its fiscal 2019 first quarter, thanks to improved holiday sales in the United States. The world’s largest coffee chain saw the popularity of its holiday-themed drinks rise in the U.S. after several months of slowing growth in an increasingly crammed market for coffee makers.
Americas region accounted for $4.6 billion of the company’s total revenue, up 8% from last year. Despite posting flat store transactions in the region, Starbucks said that customers spent more on each visit. The segment recorded same-store sales growth of 4 percent.
In Asia Pacific region, Starbucks generated revenues of $1.2 billion, up 45% from the same period last year. Transactions and same-store sales in the region grew 3% and 1%, respectively. Shares of the company were up $2.34, or 3.61% to $67.08 in pre-market trading on Friday following the results.
SBUX Earnings & Outlook
Starbuck posted fourth-quarter net income of $761 million, or $0.61 per share, compared with $2.25 billion, or $1.57 per share in the period a year ago. Excluding nonrecurring costs like restructuring expenses, the company earned $0.75 per share, up 15% from $0.65 per share in the year-ago period.
Analysts were expecting GAAP earnings of $0.64 per share, and non-GAAP earnings of $0.65 based on Refinitiv figures. Revenue jumped 9% to $6.6 billion, from $6.1 billion a year ago. Analysts polled by Refinitiv were for revenue of $6.49 billion for the quarter.
Looking ahead, Starbucks is expecting fiscal 2019 earnings of between $2.68 to $2.73 per share, up from its previous forecast for earnings of between $2.61 and $2.66 per share. The company maintained its full-year revenue growth guidance of 5% to 7% as well as its plan to set up 2,100 new stores worldwide.
Starbucks Executive Comments
“Starbucks delivered solid operating results in the first quarter, demonstrating continued momentum in our business, as we drive our growth-at-scale agenda with focus and discipline,” said Kevin Johnson, President and Chief Executive Officer.
“We are particularly pleased with the sequential improvement in quarterly comparable store transactions in the U.S., underpinned by our digital initiatives and improved execution of our in-store experience. With this solid start to the fiscal year, we are on track to deliver on our full-year commitments.”
Starbucks Corp. Profile
Starbucks Corp. engages in the production, marketing, and retailing of specialty coffee. It operates through the following segments: Americas; China/Asia Pacific (CAP); Europe, Middle East, and Africa (EMEA); and Channel Development. The Americas, CAP, EMEA segments sells coffee and other beverages, complementary food, packaged coffees, single-serve coffee products, and a focused selection of merchandise through company-oriented stores, and licensed stores.
The Channel Development segment include sales of packaged coffee, tea, and ready-to-drink beverages to customers outside of its company-operated and licensed stores. The company brands include Evolution Fresh, Teavana, Tazo Tea and Seattle’s Best. Starbucks was founded by Jerry Baldwin and Howard D. Schultz on November 4, 1985 and is headquartered in Seattle, WA. – CNN Money