Starbucks Earnings Hit Target, Shares Rise
Starbucks reported quarterly earnings that met analysts' expectations on Thursday but revenue was slightly lower than anticipated. The shares fell in after-hours trading.
The coffee chain reported reported fiscal first-quarter earnings rose to 57 cents per share from 50 cents per share a year earlier.
Revenue increased 10 percent to $3.8 billion from $3.44 billion a year ago.
Analysts had expected the company to report earnings excluding items of 57 cents a share on $3.84 billion in revenue, according to a consensus estimate from Thomson Reuters.
The company said it posted record results in the quarter despite "significant and unexpected cost pressures."
Global same-store sales growth rose 6 percent in the quarter, helped by solid growth in its U.S. retail business and strength in China and Asia. Net revenues for its China and Asia business rose 28 percent, aided by an 11 percent increase in comparable store sales.
Looking ahead, Starbucks is forecasting revenue growth of 10 to 13 percent, driven by mid-single-digit same-store sales growth and the opening of 1,300 net new stores.
It expects fiscal year 2013 earnings to rise 15 to 20 percent to $2.06 to $2.15 per share.
Starbucks also plans about $1.2 billion in capital expenditures for the year, as it increases new store growth and increases production capacity.
"The quality and diversity of growth drivers in the business, combined with our continued focus on operational excellence, gives us confidence in sustainable, strong profitable growth," CFO Troy Alstead said in a press release.
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