Starbuckson Wednesday reported quarterly revenue that topped analysts’ expectationsas cafes in the US and *** attracted more customers.
Shares of the company jumped 2% in extended trading.
“Our US business delivered 6% comparable store sales growth in the fourth quarter, while China grew comparable store sales by 5% and total transactions by 13%, “CEO Kevin Johnson said in a statement.
Here’s what the company reported compared with what Wall Street was expecting, 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 coffee chain reported fiscal 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 salesrose 7% to $ 6. 75 billion, topping expectations of $ 6. 68 billion.
The company reported global same-store sales growth of 5%. Both the U.S. and China, its two biggest markets, reported strong same-store sales and increasing traffic.
In the US, sales at stores open at least a year increased by 6%, driven by its cold drinks. During the quarter, Starbucks introduced its first new pumpkin coffee drink since the pumpkin spice latte: the pumpkin cream cold brew. The coffee chain has also been expanding its distribution of its Nitro cold brew across the U.S. Executives said last quarter that it was on track to be in all U.S. stores by the end of fiscal 2019.
After revamping its loyalty program last quarter, Starbucks now counts 17 .6 million active rewards members in the US
In China, despite growing competition fromLuckin Coffeeand concern about an economic slowdown, Starbucks saw same-store sales growth of 5%, as more customers bought its products and spent more.
Starbucks also introduced its fiscal 2020 outlook. It expects to add 2, 000 net new Starbucks locations worldwide, with continued expansion in the US 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. Analysts were expecting the coffee chain to report fiscal 2020 earnings of $ 3. 08 per share.
In September, Starbucks said that it expects fiscal 2020 earnings to be below its “ongoing growth model of 10%. ” The range provided Wednesday estimates adjusted earnings per share will grow by 6% to 7.8%.
CFO Pat Grismer said that one-time tax benefits realized in fiscal 2019 would be a headwind and that Starbucks bought back $ 2 billion worth of shares earlier than originally planned.