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
Read Full Story

Markets

DJIA 21,081.52 -1.43 -0.01%
NASDAQ 6,206.96 1.71 0.03%
S&P 500 2,415.22 0.15 0.01%
NIKKEI 225 19,686.84 -126.29 -0.64%
HANG SENG 25,639.27 8.49 0.03%
DAX 12,602.18 -19.54 -0.15%
USD (per EUR) 1.12 0.00 -0.30%
USD (per CHF) 0.97 0.00 0.15%
JPY (per USD) 111.19 -0.53 -0.48%
GBP (per USD) 1.28 -0.01 -0.98%

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.