Strong same-store sales help Starbucks beat Street
Starbucks exceeded analyst predictions for revenue, earnings per share (EPS), and same-store sales during the third quarter of fiscal 2019.
The coffee giant’s consolidated net revenue of $6.82 billion marked an 8% increase from $6.3 billion the third quarter of the prior fiscal year, and beat Wall Street consensus of $6.8 billion. Earnings per share (EPS) of $1.12 rose 86% from $0.62 and exceeded analyst predictions of $0.70 by $0.42.
Same-store sales were another highlight, rising 6% globally, bolstered by 7% growth in the U.S. and 6% in China/Asia-Pacific. U.S. same-store sales growth was driven by a 4% increase in average ticket and a 3% increase in transactions. China/Asia Pacific same-store sales growth was driven by a 3% increase in average ticket and a 2% increase in transactions.
The company opened 442 net new stores in the quarter, operating 30,626 stores globally at the end of the quarter. Global net store count grew 7% compared to the previous fiscal year, led by 16% net store growth in China.
Active Starbucks Rewards membership in the U.S. increased 14% year-over-year to 17.2 million.
“Starbucks delivered strong operating performance in the third quarter, further demonstrating that our ‘Growth at Scale’ agenda is working,” said Kevin Johnson, president and CEO, Starbucks. “Our two targeted long-term growth markets, the U.S. and China, performed extremely well across a number of measures as a result of our focus on enhancing the customer experience, driving new beverage innovation and accelerating the expansion of our digital customer relationships. Given the strong momentum across our business, we are raising our full-year financial outlook.”
Starbucks updated its fiscal year 2019 guidance to same-store sales growth of approximately 4% (previously 3% to 4%), approximately 2,000 net new Starbucks stores globally (previously approximately 2,100 net new stores) – including over 600 in the Americas and nearly 600 in China.