https://nighthawkrottweilers.com/

Business

Starbucks revenue type estimates that customers spend more




On Thursday, Starbucks reported quarterly revenues that beat analysts' expectations, but fell slightly on sales, despite customers spending more in their stores.

of the company was up 1% in extended trading.

" We are particularly pleased with our comparable sales growth in our two leading markets, the US and China, where we also continue to drive a strong new store development with industry-leading returns, says CEO Kevin Johnson 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: 60 cents, adjusted, vs. 56 cents expected
  • Revenue: $ 6.31[ads1] billion vs. $ 6.32 billion expected
  • Same store sales: 3% versus 2.9% expected

Coffee chain reported a net income of NOK 663.2 million for the second quarter , or 53 cents per share, up from $ 660.1 million, or 47 c years earlier.

Without the sale of the Tazo brand, costs related to the Nestle license agreement and other items, Starbucks achieved 60 cents per share, peaking at 56 cents per share, expected by analysts surveyed by Refinitiv.

Net sales rose 5% to $ 6.31 billion, missing expectations of $ 6.32 billion.

The company reported sales growth at the same store of 3%, and lost Wall Street's estimates of 2.9%. Starbucks attributed the growth to a 3% increase in the average ticket. In the US, sales in stores increased at least a year by 4%. The company even saw sales growth of 3% in China, where the company is facing increased competition from Luckin Coffee and a declining economy.

The company raised its full-year profit forecast. It now expects adjusted, or non-GAAP, earnings per share in the range of $ 2.75 to $ 2.79, up from a previous range of $ 2.68 to $ 2.73. Analysts predicted 2019 revenues of $ 2.71 per share.

Starbucks loyalty program grew to 16.8 million active members in the US, an increase of 13% from last year. The Seattle-based company recently renewed the program, offering a wider range of redemption options for members. The changes also mean that customers have to spend more to get a free drink. Unlike the recent past that made major changes to its loyalty program back in 2016, Starbucks has largely avoided social media setbacks.



Source link

Back to top button