Starbucks releases quarter results
Coffee company performance remains strong
Starbucks Corp., Seattle, reported financial results for its 13-week fiscal third quarter which ended June 30, 2019. GAAP results in fiscal 2019 and fiscal 2018 include items which are excluded from non-GAAP results.
“Starbucks delivered strong operating performance in the third quarter, further demonstrating that our ‘Growth at Scale’ agenda is working,” said Kevin Johnson, president and chief executive officer, in a statement. “Our two targeted long-term growth markets, the U.S. and China, performed extremely well across a number of measures as a result of our focus on enhancing the customer experience, driving new beverage innovation and accelerating the expansion of our digital customer relationships. Given the strong momentum across our business, we are raising our full-year financial outlook.
“Starbucks continues to be focused and disciplined in the execution of our three key strategic priorities that we established last year: accelerating growth in the U.S. and China, expanding the global reach of the Starbucks brand through our Global Coffee Alliance with Nestlé, and increasing shareholder returns,” he continued. “With our efforts to streamline the company and elevate the Starbucks brand, we are positioning the company to deliver predictable and sustainable operating results while building an enduring company that creates meaningful long-term value for Starbucks shareholders.”
Global comparable store sales increased 6 percent, driven by a 3 percent increase in average ticket and a 3 percent increase in comparable transactions, the company reports. America’s comparable store sales increased 7 percent, driven by a 4 percent increase in average ticket and a 3 percent increase in transactions; U.S. comparable store sales increased 7 percent, with transactions up 3 percent, it adds.
The company opened 442 net new stores in the third quarter, yielding 30,626 stores at the end of the quarter, a 7 percent increase over the prior year. Nearly one-third of net new store openings were in China and 48 percent were in other international markets. Consolidated net revenues of $6.8 billion grew 8 percent over the prior year, it adds.
Consolidated net revenues grew 11 percent over the prior year adjusted for unfavorable impacts of approximately 2 percent from streamline-driven activities and 1 percent from foreign currency translation. Streamline-driven activities include the licensing of its CPG and foodservice businesses to Nestlé following the close of the Aug. 26, 2018, transaction, and the conversion of certain international retail operations from company-operated to licensed models, the company says. BI