Starbucks SBUX posted better-than-expected fourth quarter earnings Thursday, powered by a solid U.S. sales and ticket price increases in the U.S., sending shares sharply higher in pre-market trading.
Starbucks said non-GAAP earnings for the three months ending in September, the group’s fiscal fourth quarter, rose 39% from last year to $1.06 per share, topping the Street consensus forecast of 97 cents per share.
Group revenues, Starbucks said, were up 11.8% to a record $9.4 billion, again besting analysts’ estimates of a $9.29 billion tally. North America comparable sales were up 8% from last year, Starbucks said, while comps in China surprised with a 5% boost in the post-Covid era, but slowed notably from the 46% growth rate recorded over the three months ending in June.
Globally, same store sales were up 8%, besting the Street consensus forecast of a 6.6% gain.
“We finished our fourth quarter and full fiscal year strong, delivering on the higher end of our full-year guidance. Our Reinvention is moving ahead of schedule, fueling revenue growth, efficiency and margin expansion,” said CEO Laxman Narasimhan. “Notably, we continue to see the positive impact of our Reinvention on our partner and customer experiences, proof points that we can continue to create, grow and strengthen our business while creating value for all.”
“As we enter the current year, in the face of macro uncertainty, we remain confident in the momentum throughout our business and headroom globally,” he added. “We expect sustained momentum throughout the company for years to come.”
Starbucks shares were marked 7.28% higher in pre-market trading immediately following the earnings release to indicate an opening bell price of $98.00 each.
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