Starbucks Earnings: Growing Stores AND Operating Margin
April 24, 2014 by Jon C. Ogg
Thomson Reuters had estimates of $0.56 in earnings per share on revenues of $3.95 billion. The coffee retailer had earnings of $0.51 per share and revenue of $3.56 billion a year ago.
The company’s same-store sales were up by 6% in the Americas unit. The global store count on all of its brands is now up to 20,519 after adding 335 in the last quarter. Starbucks also said that the operating margin grew by 130 basis points to 16.6%.
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As far as guidance, the company said it expects $0.64 to $0.66 EPS, while Thomson Reuters had estimates of $0.66 EPS. For the year, Starbucks is maintaining its guidance for revenue to be up in the mid-single digits as far as same-store sales. Fiscal earnings are put in a range of $2.62 to $2.68 per share versus the Thomson Reuters estimate of $2.66 per share.
Starbucks sees adding roughly 1,500 stores globally this fiscal year, and its consolidated margin growth for the year is expected to be 175 to 200 basis points higher than a year ago.
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Starbucks shares closed up almost 1% at $71.09 against a 52-week range of $59.13 to $82.50. The stock was up another 0.8% or so in the after-hours session immediately after the report.
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