Starbucks Q3 profit soars, but pares full-year growth outlook
Starbucks Corp.’s third-quarter earnings and sales beat analysts’ estimates, but the company slightly lowered its outlook amid a slowdown in sales in China.
The world’s biggest coffee retailer said it earned $852.5 million, or 61 cents a share, in the quarter ended July 1, up from $691.6 million, or 47 cents a share, in the year-ago period. Adjusted for one-time items, the company earned 62 cents a share, compared with 55 cents a share a year ago.
Sales rose 11% to $6.31 billion. Global same-store sales increased 1%, driven by a 3% increase in average tickets.
Americas and U.S. same-store sales increased 1%. But same-store sales in China, where it is aggressively expanding, decreased 2% amid increased competition and delivery services regulations.
Starbucks opened 511 net new stores in the quarter, for a total of 28,720 stores across 77 markets. The chain’s loyalty program added 1.9 million active members in the U.S., up 14% year-over-year. Total member spend now represents 40% of U.S. company-operated sales.
“Starbucks record Q3 revenues and profits once again reflect the underlying strength of the Starbucks business and brand all around the world,” said Scott Maw, CFO. “We continue to grow share in virtually every market and channel in which we operate at the same time that our streamline initiatives are enabling us to sharpen our focus -- and leverage our resources -- against our highest value, long-term growth opportunities.”
The company said it now expects full year global comparable store sales growth to be just below the 3%-5% targeted range, with Q4 expected to be at the lower end of the 3%-5% range.
Starbucks' third-quarter report comes exactly one month after Howard Schultz stepped down as executive chairman.
The world’s biggest coffee retailer said it earned $852.5 million, or 61 cents a share, in the quarter ended July 1, up from $691.6 million, or 47 cents a share, in the year-ago period. Adjusted for one-time items, the company earned 62 cents a share, compared with 55 cents a share a year ago.
Sales rose 11% to $6.31 billion. Global same-store sales increased 1%, driven by a 3% increase in average tickets.
Americas and U.S. same-store sales increased 1%. But same-store sales in China, where it is aggressively expanding, decreased 2% amid increased competition and delivery services regulations.
Starbucks opened 511 net new stores in the quarter, for a total of 28,720 stores across 77 markets. The chain’s loyalty program added 1.9 million active members in the U.S., up 14% year-over-year. Total member spend now represents 40% of U.S. company-operated sales.
“Starbucks record Q3 revenues and profits once again reflect the underlying strength of the Starbucks business and brand all around the world,” said Scott Maw, CFO. “We continue to grow share in virtually every market and channel in which we operate at the same time that our streamline initiatives are enabling us to sharpen our focus -- and leverage our resources -- against our highest value, long-term growth opportunities.”
The company said it now expects full year global comparable store sales growth to be just below the 3%-5% targeted range, with Q4 expected to be at the lower end of the 3%-5% range.
Starbucks' third-quarter report comes exactly one month after Howard Schultz stepped down as executive chairman.