For anyone who freaked out in February when Starbucks (NASDAQ:SBUX) CEO Howard Schultz said the coffee purveyor's hypergrowth at the time was "unsustainable," get ready for what many of us see as no surprise.
Its March revenues and same-store sales continue on their caffeinated jaunt. And that's no April foolin'. Same-store sales rose 12%, while revenues increased 30%. That's not too shabby considering many might argue that the advent of spring, and the emptying of gift card balances, could cause some degree of sluggishness for March. (If the gift card effect is still going strong, it could be a tough April, so stay tuned for that one.)
This news follows tidbits that have trickled in from Starbucks' annual meeting. If you were anxiously awaiting a stock split -- not a corporate event most Foolish investors pay too much mind to -- it sounds unlikely for now. Also, a dividend, which would make a company a contender in our Income Investor newsletter, is not on the Starbucks agenda, either.
On the growth side of things, Schultz said the company is stepping up the opening of new stores. The chain's currently growing at a rate of 3.5 per day, or 1,300 per year. Ultimately, it plans to have 25,000 stores. This year, of its planned 950 new stores, 325 will be drive-throughs, illustrating the increasing presence in rural and suburban environs.
So, given the March numbers, there are still plenty of reasons to like Starbucks. Perhaps Schultz was just trying to keep us on our toes back in February -- or at the very least, reminding us that the more realistic growth numbers were simply what the company forecast, in the 3%-7% range for same-store sales and 20% growth in revenues.
The holidays are over, the sun's out (though, not today in Alexandria), the birds are chirping, and things still seem pretty sweet at Starbucks.
There are 19,000 ways to order a Starbucks beverage. Talk about variation. That's one factoid among many dug up and deliberated by Fools on the Starbucks discussion board.
Alyce Lomax does not own shares of any companies mentioned.
