Starbucks Q3 same-store sales increase 7.9%; raises outlook
Starbucks' turnaround under CEO Brian Niccol was evident in its third quarter as the company reported its fourth consecutive quarter of comp growth and second consecutive quarter of margin expansion.
The coffee giant reported adjusted net earnings of $0.85 per share for the quarter ended June 28. Analysts had expected earnings per share of $0.66 per share.
Consolidated net revenues at Starbucks decreased 1% to $9.3 billion amid the sale of a controlling stake in its China business. Analysts had expected revenues of $9.16 billion.
[READ MORE: Starbucks to close $4 billion China joint venture; to expand footprint]
Global comparable store sales increased 7.9%, primarily driven by a 4.2% increase in comparable transactions and a 3.5% increase in average ticket. North America comparable store sales increased 8.1%, primarily driven by a 4.5% increase in comparable transactions and a 3.5% increase in average ticket.
U.S. comparable store sales increased 7.9%, primarily driven by a 4.2% increase in comparable transactions and a 3.6% increase in average ticket.
“Our Back to Starbucks plan was built on the belief that an extraordinary cup of coffee, human connection and customer experience win the day, every day,” said Niccol. “Our third quarter results are proof they do. We have more work to do, but we're relentlessly focused on reclaiming the third place and becoming the world's greatest customer service company.”
The company opened 175 net new stores during the third quarter. It ended the period with 41,304 stores (with 33% company-operated and 67% licensed). At the end of the quarter, Starbucks had 16,933 U.S. stores, which comprised 41% of the company’s global portfolio, ending the period with 16,933 stores.
