Starbucks' revenue grew 8% year over year to $6.82 billion, above Wall Street's estimates for revenue of $6.67 billion. The gains were driven by a 6% rise in global comparable-store sales, which was also above analysts' projections for comp growth of 4%.
Notably, comp growth was strong in Starbucks' two most important markets, China and the U.S., which increased by 6% and 7%, respectively. The U.S. is Starbucks' largest market, and China represents its primary growth opportunity.
"Starbucks delivered strong operating performance in the third quarter, further demonstrating that our 'Growth at Scale' agenda is working," CEO Kevin Johnson said in a press release. "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."
All told, Starbucks' non-GAAP (adjusted) earnings per share jumped 26% to $0.78. Analysts had been expecting adjusted EPS of only $0.72.
Based on these strong results, Starbucks raised its full-year guidance, including:
- Global comp growth of approximately 4%, up from prior guidance of 3% to 4%.
- Revenue growth of approximately 7%, up from 5% to 7%.
- Non-GAAP earnings per share of $2.80 to $2.82, up from $2.75 to $2.79.
"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," Johnson said.
With Starbucks' stock now up 50% so far in 2019 and 87% over the past year, investors appear to be pleased with Starbucks' progress.