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Starbucks (SBUX) earnings Q4 2019 meet estimates



Starbucks reported on a quarterly revenue that topped analysts' expectations as cafes in the U.S. and China attracted more customers.

Shares of the company jumped more than 2% in extended trading.

"Our US business delivered 6% comparable store sales growth in the fourth quarter, while and total transactions by 13%, "CEO Kevin Johnson said in a statement.

Here's what the company compared with what Wall Street expects, based on a survey of analysts by Refinitiv:

  • Earnings per share: 70 cents , adjusted, vs. 70 cents expected
  • Revenue: $ 6.75 billion vs. $ 6.68 billion expected
  • Global same-store sales: 5% vs. 4% expected

The fourth quarter net income of $ 802.9 million, or 67 cents per share, up from $ 755.8 million, or 56 cents per share, a year earlier.

Excluding the sale of the Tazo brand, Nestle-related transaction costs and other items, Starbucks earned 70 cents per share, in line with estimates from analysts surveyed by Refinitiv.

Net sales rose 7% to $ 6.75 billion, topping expectations of $ 6.68 billion.

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The company reported 5% global same-store sales growth. Both the U.S. in the United States, sales at stores open at least 6%, driven by its cold drinks. During the quarter, Starbucks introduced his first pumpkin spice latte: the pumpkin cream cold brew. This summer, the coffee chain thus expanded distribution of its Nitro cold brew in all company-operated U. stores, Johnson said. U.S. cafes thus grew in traffic throughout the day, for the second consecutive quarter.

Executives attributed U.S.

17.6 million active rewards members in the United States.

In China, despite growing competition from Luckin Coffee and concern about economic slowdown, Starbucks saw-same-store sales growth of 5%, more customers bought its products and spent more. Alibaba accounted for 7% of sales during the quarter.

The coffee chain opened more than 4,000 locations across the country. Those new locations include a smaller format cafe with limited seating in Beijing, similar to those developed by Luckin. Starbucks plans to construct even more of those smaller locations in fiscal 2020.

Starbucks thus introduced its fiscal 2020 outlook. It expects to add 2,000 new Starbucks locations worldwide, with continued expansion in the U.S. and China. It expects revenue growth in a range of 6% to 8% and global same-store sales growth in a range of 3% to 4%.

"Our strong performance throughout fiscal 2019 gives us confidence in a robust operating outlook for fiscal 2020, "Johnson said in a statement.

Starbucks is also expecting to spend about $ 1.8 billion on capital expenditures.

The company expects fiscal 2020 adjusted, or non-GAAP, earnings per share in a range of $ 3 to $ 3.05 , In September, Starbucks said that it expects fiscal 2020 to be below its "ongoing growth model of 10%." 6% to 7.8%.

CFO Pat Grismer said in September that would be a headwind and that Starbucks bought back $ 2 billion worth of shares earlier than originally planned.


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