Strong Sales Gains for Starbucks, Growing Stores and Traffic, and Dividend Hike
Starbucks Corp. (NASDAQ: SBUX) is surging after its earnings report as traffic rose for the coffee giant. Sales rose a sharp 6% for its same-store sales. The earnings reported by Starbucks came in at $359 million, or $0.46 per share. The results look unimpressive on the surface is you just compare them to $358.5 million or $0.47 per share a year ago, but the quarter a year ago was higher due to gains from real estate. To show this in perspective, total revenues were up 11% to $3.36 billion in the quarter.
Thomson Reuters was calling for $0.45 in earnings per share and revenue of $3.39 billion.
Guidance for the full year of 2013 came in at $2.06 to $2.15 per share, but the estimate we saw was $2.13 per share. In the coming year Starbucks is opening close to 1,200 new stores. A dividend hike of about 24% is not hurting the stock either. That will put its dividend up above 1.8%.
Starbucks shares rose by 1.5% to $46.62 on the day and shares are currently up close to 6% at $49.36 in the after-hours trading session.
JON C. OGG
Filed under: 24/7 Wall St. Wire, Dividends & Buybacks, Earnings, Food, Retail Tagged: featured, SBUX