Starbucks raised its full-year earnings and revenue forecast on Thursday after more customers returned to cafes in the US and China for more expensive drinks.
The shares in the company jumped 5.8% in extended trading. The share of the coffee chain, which has a market value of USD 110.2 billion, is up 41% so far this year.
"Our two targeted long-term emerging markets, the US and China, performed extremely well across a range of measures as a result of our focus on enhancing customer experience, driving new beverage innovation, and accelerating the expansion of our digital customer relationships," CEO Kevin Johnson said in a statement.
This is what the company reported compared to what Wall Street expected, based on a survey by Refinitiv analysts:
- Earnings per share: 78 cents, adjusted, versus 72 cents expected
- Revenue: $ 6.82 billion vs. $ 6.67 billion expected
- Global sales growth in the same store: 6% versus 4.0%
Starbucks reported a third-quarter financial income of $ 1
Exclusive goods, the coffee giant earned 78 cents per share, and topped the 72 cents per share expected by analysts examined by Refinitiv.
Starbucks raised the full year forecast for earnings and revenue. Now, it expects adjusted or non-GAAP earnings per share in the range of $ 2.80 to $ 2.82, up from a previous $ 2.75 range to $ 2.79 per share. Sales growth is also predicted at 7%, at the high end of the previous 5% to 7% range.
Net sales increased 8% to $ 6.82 billion, peaking at $ 6.67 billion.
at US stores grew at least one year by 7%, driven by 3% traffic growth. Analysts predicted US sales growth in the same store at 4.4%. Several customers visited cafes during the day, including the afternoon. Starbucks has tried to bring customers to the stores later in the day with promotions like Happy Hour.
Starbucks & # 39; US loyalty program totaled about 400,000 members during the quarter, bringing it a total of $ 17.2 million. The coffee giant updated the program in April, adding more redemption options and trying to stimulate customers to join.
And despite concerns about slowing economic growth in China and increased competition from Luckin Coffee, Starbucks reported sales growth at the same store of 6% in the country during the quarter, with 3% more transactions. Luckin, published on Nasdaq in May, has met with skepticism from analysts about its ability to achieve profitability due to the rapid expansion and deep discounting.
Starbucks opened 442 new new stores in its third quarter. About one third of the new stores are in China, where Luckin is trying to take over his US competitor by opening new locations at a rapid pace.
The company cut the forecast for new new stores with 100 locations. It now expects to open 2000 this year after reducing the number of stores it expects to open in Europe, the Middle East and Africa. The outlook for new stores in America and China, the two largest markets, remains unchanged.