Starbucks Delivers on Earnings Despite Wall Street's High Expectations

Starbucks comps grew 6%.

Apr 24, 2014 at 5:20PM

Starbucks (NASDAQ:SBUX) reported fiscal 2014 second-quarter earnings after the market closed today. For the period ended March 30, Starbucks profit increased 17% to a record $0.56 per diluted share, which was in line with analysts' estimates for the quarter.

Second-quarter revenue increased 9% to $3.9 billion, which was up from $3.55 billion in the year-ago period. Wall Street was looking for quarterly revenue of $3.95 billion. These results were driven by strong same-store sales growth in Starbucks' U.S. business.

Chief Operating Officer Troy Alstead said in a phone interview with The Associated Press that the domestic sales increase was the result of an uptick in customer visits, as well as people spending more on average when they visited. After seeing through the rollout of the baked goods, Alstead said Starbucks will move on to boosting lunch options.

Starbucks continued to grow its global footprint -- opening 335 new stores in the quarter, which brings its total store count to about 20,500 today. "While global comparable store sales growth of 6% was impressive, and squarely in line with our targets, even more significant is the fact that we delivered strong, and balanced, revenue and profit growth across all of our reportable segments," said Scott Maw, Starbucks' chief financial officer, in the company press release . 

As a result, Starbucks says it expects to reach its fiscal 2014 full-year targets for revenue growth of 10% or greater and global comp growth in the mid-single digits. Shares of Starbucks were trading higher by nearly 2% on the news as of 5:10 p.m.

-- Material from The Associated Press was used in this report.

Tamara Rutter owns shares of Starbucks. The Motley Fool recommends Starbucks. The Motley Fool owns shares of Starbucks. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.

 


Compare Brokers