Starbucks Q4 revenue surges; 2,100 stores on tap for 2019

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Starbucks Q4 revenue surges; 2,100 stores on tap for 2019

By Marianne Wilson - 11/01/2018
Starbucks Corp. ended the year on a high note, reporting sales and earnings that beat the Street, amid a better-than-expected increase in U.S. same-store sales, on Thursday.

Also on Thursday, the chain announced its 2019 outlook. It includes adding 2,100 net new stores globally.

The coffee giant said it earned $755.8 million, or 56 cents a share, in the quarter ended Sept. 30, compared with $788.5 million, or 54 cents a share, in the year-ago period. Adjusted for one-time items, the company earned 62 cents a share in the quarter. Analysts had expected adjusted earnings of 60 cents a share. Same-store sales drove 3%, with a 4% increase in the U.S.

Total net revenue rose 11% to $6.30 billion, better than the $6.27 billion expected. Comparable-store sales rose 3% worldwide, also more than expected, driven by a 4% growth in the U.S.

In other fourth-quarter metrics, Starbucks’ loyalty program grew to 15.3 million active members in the U.S., up 15% year-over-year. And mobile order and pay represented 14% of U.S. company-operated transactions

"Starbucks record Q4 performance reflected meaningful improvement in virtually every critical operating metric compared to Q3," said Starbucks CEO Kevin Johnson. “As we enter fiscal 2019, we are executing against a clear growth agenda, with a focus on our long-term growth markets of the U.S. and China. We are also excited about the long-term growth potential of our new Global Coffee Alliance with Nestlé.”

For the full year, Starbucks reported consolidated net revenues of $24.7 billion, up 10% over the prior year. Global same-store sales increased 2%, driven by a 3% increase in average ticket

Starbucks opened 604 net new stores in the quarter, for a total of 29,324 locations across 78 markets.

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