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Starbucks (SBUX) on Thursday improved its profit and margin outlook for the year, which combined with better-than-expected US and Chinese sales growth pushed stocks higher after the close. Starbucks shares rebounded after normal business hours.
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The coffee chain has raised its earnings per share outlook for the entire year from $ 2.75 to $ 2.79. That goes from $ 2.68 to $ 2.73 and above expectations of $ 2.73. The coffee chain also said it expects operating margins in the Americas region to be "slightly higher", better than previous forecasts, "slightly down" .
"We are particularly pleased with the comparable growth in our sales in our two largest markets, the United States and China, where we also continue to drive the development of new stores offering industry-leading returns." said managing director Kevin Johnson in a statement.
In the United States and the Americas, same-store sales rose 4%, better than Consensus Metrix forecasts, for a gain of 3.7%. in China and the Asia-Pacific region, they increased by 2%. It was also better than expected for a 1.5% increase.
Overall, however, same-store sales increased 3%, compared to only 3.1%.
Starbucks Earnings, Starbucks Equity
The coffee chain reported earnings per share of 60 cents, up 13%. Revenues rose 5% to $ 6.3 billion.
Starbucks maintained its overall sales forecast for comparable stores of 3% to 4% for the year. The company is still recording revenue growth of 5% to 7%.
Starbucks shares rose 1.7% to 79.04 after trading hours. Rival Dunkin & Brands (DNKN) was unchanged.
Market analysis shows that Starbucks shares have a composite rating of 93 out of 99. The BPA rating of the stock is 86. The relative strength of the stock has flattened over the past few years. last days.
Thursday's gains add to Starbucks' long run, though some analysts say the share price already reflects the benefits of the company's more rigorous operations. The company is facing competition from other players in the beverage and fast food sector, who see coffee as a means of growth.
Giant drinks Coca Cola (KO), which this week announced its intention to launch ready-to-drink coffee products in 25 markets this year, also remained unchanged on Thursday.
This month, Starbucks has fine-tuned its loyalty program, which allows it to drive more traffic, in order to reward customers faster and expand their buying options. The program had 16 million active members in December.
In January, Starbucks announced a delivery to San Francisco via a partnership with Uber Eats. The channel said it would expand the service in New York, Los Angeles, Chicago, Boston and Washington, DC.
While it's hard to avoid the company's stores in the US, Starbucks has been trying to locate more stores in China. But the Chinese economy is slowing down and the coffee chain is facing competition.
Luckin Coffee IPO
One of its competitors in China, fast-growing coffee Luckin, has asked to go public on the Nasdaq this week. The company had nearly 2,400 stores in China at the end of last month, most of them being smaller stores designed for collection in areas such as colleges and office buildings. Luckin fully processes customers' coffee orders via its mobile applications. According to the company, this approach offers customers "a 100% cashier-free environment".
Last year, Starbucks said it would work with the Chinese e-commerce giant Ali Baba (BABA) in order to strengthen its distribution and distribution network in this country. As part of this partnership, Starbucks will test Ele.me, a delivery platform operating under the umbrella of Alibaba.
Starbucks will also establish "delivery kitchens" in Hema's high-tech, application-connected supermarkets, to develop Starbucks' distribution network and leverage "valuable consumer information" from these supermarkets .
In a research note published before Starbucks profits, Jeremy Scott, an analyst at Mizuho, said the competition, especially from a strong rival pocketed, could result in a reduction in deliveries for the purpose to seduce consumers, which would have a negative impact on the final result. .
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