FINANCE

Starbucks Q2 earnings beat Street

BY Marianne Wilson

Starbucks Corp. reported second-quarter earnings that topped the Street amid strong comp-sales growth in two key markets: the U.S. and China.

The coffee giant reported adjusted earnings per share of 60 cents, up 13%, for the period ended March 31. Analysts had expected EPS of 56 cents.

Consolidated net revenues rose 5% to $6.31 billion. Analysts were looking for $6.32 billion.

Starbucks’ global comparable store sales increased 3%, beating estimates, driven by a 3% increase in average ticket. Same-store sales in the Americas and U.S. rose 4%, driven by a 4% increase in average ticket.

In the China/Asia Pacific region, same-store sales increased 2%, driven by a 2% increase in average ticket. China comparable store sales increased 3%, with comparable transactions down 1%.

Starbucks said its Rewards loyalty program grew to 16.8 million active members in the U.S., up 13% year-over-year.

The company opened 319 net new stores during the quarter, for a total of 30,184 stores at the end of the period; 94% of the openings were outside of the U.S. and 88% were licensed.

Starbucks raised its full-year earnings-per-share outlook to $2.75 to $2.79, up from $2.68 to $2.73.

“Starbucks remains focused and disciplined in the execution of our three key strategic priorities: accelerating growth in our targeted markets of the U.S. and China, expanding the global reach of the Starbucks brand through our global coffee alliance with Nestlé, and increasing shareholder returns,” said Kevin Johnson, president and CEO. “With our efforts to streamline the company and elevate the Starbucks brand, we are not only positioning the company to deliver more predictable and sustainable operating results but are also building Starbucks to be an enduring company that creates meaningful value for shareholders for decades to come.”

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