Starbucks Delivers on Earnings Despite Wall Street's High Expectations
Starbucks reported fiscal 2014 second-quarter earnings after the market closed today. For the period ended March 30, Starbucks profit increased 17% to a record $0.56 per diluted share, which was in line with analysts' estimates for the quarter.
Second-quarter revenue increased 9% to $3.9 billion, which was up from $3.55 billion in the year-ago period. Wall Street was looking for quarterly revenue of $3.95 billion. These results were driven by strong same-store sales growth in Starbucks' U.S. business.
Chief Operating Officer Troy Alstead said in a phone interview with The Associated Press that the domestic sales increase was the result of an uptick in customer visits, as well as people spending more on average when they visited. After seeing through the rollout of the baked goods, Alstead said Starbucks will move on to boosting lunch options.
Starbucks continued to grow its global footprint -- opening 335 new stores in the quarter, which brings its total store count to about 20,500 today. "While global comparable store sales growth of 6% was impressive, and squarely in line with our targets, even more significant is the fact that we delivered strong, and balanced, revenue and profit growth across all of our reportable segments," said Scott Maw, Starbucks' chief financial officer, in the company press release .
As a result, Starbucks says it expects to reach its fiscal 2014 full-year targets for revenue growth of 10% or greater and global comp growth in the mid-single digits. Shares of Starbucks were trading higher by nearly 2% on the news as of 5:10 p.m.
-- Material from The Associated Press was used in this report.
The article Starbucks Delivers on Earnings Despite Wall Street's High Expectations originally appeared on Fool.com.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.
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