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That's a lot of coffee: Starbucks sales set to break $20 billion in 2016; more expansion on tap


Buoyed by the launch of new menu offerings and increases in store traffic, Starbucks Corp. brewed up another strong quarter, with revenue and profits meeting Wall Street expectations. The coffee giant also continues to set a torrid pace for store expansion.

Starbucks intends to open 1,800 new stores globally during fiscal 2016, with licensing driving a large portion of the growth. This includes 700 stores in the Americas (half licensed), 900 in China/Asia-Pacific (two-thirds licensed), and 200 primarily licensed stores in Europe/Middle East/Africa (EMEA).

In the fourth quarter, Starbucks' net earnings rose 11% to $652.5 million from $587.9 million, with lower income taxes helping to offset a reduction in pretax income. Total net revenues climbed 17% to $4.91 billion, from $4.18 billion. Consolidated same-store sales growth of 8%, including better-than-expected 9% same-store sales growth in the U.S., helped boost revenues.

Looking to 2016, the company said it expects full year consolidated revenue growth of 10%+ on a 52 week basis, with the 53rd week expected to add approximately 2%, which would bring it past the $20 billion mark.

In addition, mobile order and pay functionality expanded to all U.S. sores during the quarter and became available on Android devices through the Starbucks app.

“Starbucks record fourth quarter financial results demonstrate the strength and relevance of the Starbucks brand around the world,” said Howard Schultz, Starbucks chairman and CEO. “And our results underscore the success of the investments we continue to make in our people and business, in new beverage and food innovation and in groundbreaking technology innovation that is deepening our connection to customers everywhere.”

During the full fiscal year, net earnings rose 33% to $2.76 billion, from $1.07 billion.

Consolidated net revenues increased 17% to $19.16 billion, from $16.45 billion. Consolidated and U.S. same-store sales both increased 7%.

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