Starbucks raises 2019 profit outlook after earnings beat
SEATTLE (AP) — Starbucks Corp. is raising its profit outlook for 2019 after better-than-expected results in its most recent quarter.
The Seattle-based coffee company said Thursday it earned $663.2 million, or 53 cents per share, in its fiscal second quarter, up slightly from the January-March period a year ago.
Excluding one-time items, such as the sale of its Tazo tea brand, Starbucks earned 60 cents per share. That beat Wall Street’s estimate of 56 cents, according to a survey of 13 analysts by Zacks Investment Research.
Same-store sales rose 3% globally, meeting analysts’ forecasts. Revenue rose 4.5% to $6.31 billion, which was also in line with analysts’ forecasts.
The company said it now expects full-year earnings in the range of $2.75 to $2.79 per share, up from its previous guidance of $2.68 to $2.73. It reiterated that it expects same-store sales to grow 3% to 4% globally this year.
Starbucks’ shares rose 1.5% to $78.30 in after-hours trading following the earnings report.
The company said store transactions were flat in the Americas, Asia and Europe. But customers spent more per order.