Starbucks shares climbed in after-hours trading after closing lower on Thursday after the coffeehouse chain topped Wall Street’s expectations for both revenue and earnings.
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| Ticker | Security | Last | Change | %Chg |
|---|---|---|---|---|
| SBUX | STARBUCKS CORPORATION | 64.74 | -1.69 | -2.54% |
The company reported first-quarter revenue of $6.63 billion, topping analysts’ expectations of $4.49 billion for the quarter, according to Refinitiv data. Starbucks posted adjusted earnings per share of $0.75 cents, also topping projections.
Same-store sales grew 4 percent at both the global and U.S. level. The company set full-year earnings guidance to between $2.68 and $2.73 per share and reiterated that it expects to open roughly 2,100 net new stores globally, including more than 600 in the Americas. Starbucks’ rewards program surpassed 16 million members, growing 14 percent year-over-year.
“Starbucks delivered solid operating results in the first quarter, demonstrating continued momentum in our business, as we drive our growth-at-scale agenda with focus and discipline,” Starbucks CEO Kevin Johnson said in a statement. “We are particularly pleased with the sequential improvement in quarterly comparable store transactions in the U.S., underpinned by our digital initiatives and improved execution of our in-store experience. With this solid start to the fiscal year, we are on track to deliver on our full-year commitments.”
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Starbucks has emphasized digital sales and healthier menu options in a bid to boost revenue. The company cut about 5 percent of its global workforce last November as part of a broad restructuring plan.
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Starbucks said it expects full-year comp sales to grow by between 3 percent and 4 percent globally.
