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Starbucks raised its revenue and revenue forecast for the full year on Thursday, after more customers returned to coffee shops in the US and China for more expensive drinks.
The company's shares jumped 5.8% in prolonged trading. The stock of the coffee chain, which has a market value of $ 110.2 billion, has risen 41% since the beginning of the year.
"Our two targeted long-term growth markets, the United States and China, have achieved excellent results in a number of ways, thanks to our desire to improve the customer experience, to boost innovation in beverages and accelerate the development of our relationships with digital customers, "CEO Kevin Johnson said in a statement.
Here's what the company reported about what Wall Street was waiting for, according to an badyst poll by Refinitiv:
- Earnings per share: 78 cents adjusted against 72 cents expected
- Turnover: $ 6.82 billion versus $ 6.67 billion
- Growth in same-store sales worldwide: 6% vs. 4.0%
Starbucks' third quarter net income was $ 1.37 billion, or $ 1.12 per share, compared with $ 852.5 million, or 61 cents per share, a year ago.
Excluding items, the coffee giant has gained 78 cents per share, exceeding the expected 72 cents by badysts surveyed by Refinitiv.
Starbucks has raised its full-year earnings and earnings guidance. It now expects earnings per share adjusted or non-GAAP between $ 2.80 and $ 2.82, compared to $ 2.75 to $ 2.79 per share. It also forecasts revenue growth of 7%, the highest range in its former range of 5% to 7%.
Net sales increased 8% to $ 6.82 billion, exceeding expectations of $ 6.67 billion.
Sales in US stores opened at least one year ago increased by 7%, driven by traffic growth of 3%. Analysts have predicted US same-store sales growth of 4.4%. More and more customers were visiting cafes at any time of the day, including the afternoon. Starbucks has been trying to attract customers to its stores later in the day with promotions such as Happy Hour.
Starbucks' US loyalty program added approximately 400,000 members during the quarter, for a total of 17.2 million members. The coffee giant reorganized the program in April, adding new buyout options and trying to entice customers to join.
And despite concerns over slowing economic growth in China and increased competition from Luckin Coffee, Starbucks posted like-for-like growth of 6% in the country during the quarter, with a 3% increase in transactions . Luckin, which was made public on the Nasdaq in May, faced badysts' skepticism about its ability to achieve profitability due to its rapid expansion and sharp discounts.
Starbucks opened 442 new net stores in the third quarter. About one-third of these new stores are in China, where Luckin is trying to outpace its US competitor by opening new locations at a steady pace.
The company has effectively reduced its forecast of 100 stores for its new net stores. He is now planning to open 2,000 this year after reducing the number of stores he plans to open in Europe, the Middle East and Africa. Its outlook for new stores in America and China, its two largest markets, remains unchanged.
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