Starbucks Trounces Wall Street's Expectations... Again

Starbucks reported earnings results for its fiscal third-quarter after the market closed today. Here’s what investors need to know.

Jul 24, 2014 at 4:51PM

Starbucks (NASDAQ:SBUX) reported fiscal 2014 third-quarter earnings results after the market close today that trounced Wall Street estimates. For the period ended June 29, Starbucks generated a record profit of $0.67 per share, up 22% from the same quarter a year ago. That was $0.01 ahead of analysts estimates for earnings per share of $0.66 in the quarter. Revenue was another bright spot, surging 11% to $4.2 billion in the third quarter. This beat analyst estimates for revenue of $4.1 billion in the period.


Source: Starbucks.

This was the 18th consecutive quarter in which Starbucks achieved global comp growth of 5% or greater, with the coffee giant posting global same-store sales growth of 6% in the quarter. Starbucks achieved other notable milestones in the quarter, as well, including growing its operating margin to a third-quarter record of 18.5%. The specialty coffee retailer opened 344 new stores worldwide in the period, and now has a worldwide presence that includes 20,863 stores across 64 countries. Starbucks is now on pace to open 1,550 net new stores in fiscal 2014.

"The increasing power of the Starbucks brand, the success of our best-in-class mobile, social and digital technologies and our greatest asset -- over 300,000 partners who deliver the Starbucks Experience to over 70 million customers around the world each week -- position us to continue growing our business around the world and into the future," said Howard Schultz, Starbucks chief executive.

Shares of Starbucks were up nearly 2% in after-hours trading, at around $80.45 a share, as of 4:30 p.m.

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.

A Financial Plan on an Index Card

Keeping it simple.

Aug 7, 2015 at 11:26AM

Two years ago, University of Chicago professor Harold Pollack wrote his entire financial plan on an index card.

It blew up. People loved the idea. Financial advice is often intentionally complicated. Obscurity lets advisors charge higher fees. But the most important parts are painfully simple. Here's how Pollack put it:

The card came out of chat I had regarding what I view as the financial industry's basic dilemma: The best investment advice fits on an index card. A commenter asked for the actual index card. Although I was originally speaking in metaphor, I grabbed a pen and one of my daughter's note cards, scribbled this out in maybe three minutes, snapped a picture with my iPhone, and the rest was history.

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I love the exercise, because it makes you think about what's important and forces you to be succinct.

So, here's my index-card financial plan:


Everything else is details. 

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