Starbucks achieved strong results in its key markets in the US and China in the second quarter as the coffee house giant prepared for fiercer competition from its Beijing-based rival Luckin Coffee.
The Seattle-based company posted earnings per share of 60 cents, which exceeded Wall Street's estimates, according to Refinitiv, and quarterly revenue of $ 6.31 billion was in line with expectations.
Starbucks total sales in the same store increased 3 percent, slightly outperforming projections, and were up 4 percent in average customer bills. Comparable sales increased 4 percent in the US and 3 percent in China.
"Starbucks delivered another quarter of solid operating results, demonstrating that our Agenda & # 39; Growth at Scale & # 39; works, "said Starbucks CEO and President Kevin Johnson in a press release. "We are particularly pleased with our comparable store sales growth in our two lead markets, the US and China, where we are also driving the strong development of new businesses with industry-leading revenues. With solid financial results for the first half of the year, we are well on our way to meeting our full-year obligations.
The gain struck a few days after Luckin filed for its IPO to raise $ 1
Starbucks raised its earnings guidance for fiscal year 2019 and found that adjusted earnings per share of $ 2.75 to $ 2.79 is expected to be between $ 2.68 and $ 2.73 compared to a previous forecast.
Membership of the Starbucks loyalty program "Rewards" increased by 13 percent to 16.8 million active members. The company has revised its loyalty program in recent quarters.
Starbucks said it opened 319 new stores in the second quarter of which 94 percent are outside the United States. The chain now operates more than 30,000 locations worldwide.
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Stocks rose slightly in after-hours trading.