Starbucks boosts its outlook amid strong sales
Starbucks raised its full-year outlook Thursday after delivering strong sales growth across the board for the third quarter.
"Starbucks Q3 results represent the best across-the-board third-quarter performance in our 42-year history," Starbucks' CEO Howard Schultz said in a statement.
After the earnings announcement, the company's shares jumped more than 6 percent in after-hours trading. (Click here to get latest quote.)
The coffee chain posted fiscal third-quarter earnings excluding items of 55 cents a share, up from 43 cents a share in the year-earlier period.
Revenue rose 13 percent to $3.74 billion from $3.30 billion a year ago.
Analysts had expected Starbucks to report earnings excluding items of 53 cents a share on $3.72 billion in revenue, according to a consensus estimate from Thomson Reuters.
Same-store sales were up 8 percent globally, including 9 percent in the Americas and 9 percent in China and Asia Pacific.
Starbucks has been tweaking the products in its cafes to boost sales. In April, it rolled out revamped sandwiches in new packaging that come with slightly higher prices; the new egg salad sandwich, for example, costs $5.25, up from $5.15 previously. New salads and grain bowls were also introduced at about $7 per box.
Moving forward, the company has been testing new baked goods acknowledging that its baked goods don't have a great reputation. It also announced that it's teaming up with Danone to jump into the yogurt business, with new Greek yogurt parfaits planned for cafes by next year.
The company opened 341 net new stores, a significant jump from the 231 stores it opened in the same quarter last year. The total number of shops operated reached 19,209 stores worldwide.
The coffee chain widened its operating margin to 16.4 percent from 14.9 percent.
The company said it expects fiscal fourth-quarter earnings of 56 to 57 cents a share vs. expectations of 57 cents a share.
Starbucks raised its full-year outlook to $2.22 to $2.23 a share, up from $2.12 to $2.18 a share. The company expects full-year revenue growth of 10 to 13 percent. Analysts currently expect growth of 12 percent.
—CNBC with AP