Starbucks Q1 profit tops; on track for 1,800 new stores in 2016

Starbucks Corp. reported first quarter earnings and same-store sales that topped expectations. But the coffee giant gave a soft earnings outlook for its current quarter.



Starbucks reported better-than-expected earnings of $687.6 million for the period ended Dec. 27, 2015, down from $983.1 billion a year earlier. The prior-year period was boosted by a hefty $391 million gain related to a joint venture.



Revenue rose 12% to $5.37 billion. Analysts had forecast $5.39 billion in revenue.



The chain's comparable store sales rose 8% for the quarter, beating estimates of 6.9%. Same-store sales in Starbucks’ Americas division increased 9%, also better than expected.



Starbucks said that membership in the company's loyalty program increased 23% in the quarter. The program now has more than 11 million active members in the U.S.



“Successful retail, CPG, digital, mobile, loyalty, card and investment strategies are combining to accelerate our revenue growth and drive significant margin expansion and EPS leverage,” said Howard Schultz, Starbucks chairman and CEO.



The retailer reiterated its plans to open approximately 1,800 net new store openings in its current fiscal year, with the Americas division accounting for roughly 700 (half licensed), and China/Asia Pacific accounting for approximately 900 (two-thirds licensed).



Starbucks noted that it elected Ulta Beauty CEO Mary Dillon to its board on Jan. 4. She will serve on the board’s compensation and management development committee.