Starbucks Corporation Reports Record Revenue
Starbucks announced its earnings for the quarter ending Dec. 29, 2013, and it saw revenues rise by 12% year over year to a record $4.2 billion. The company also reported earnings per share of $0.71, which represented an increase of 25% over the $0.57 seen in the first quarter of its 2013 fiscal year.
"As our solid traffic growth and record Q1 results demonstrate, Starbucks unique combination of physical and digital assets positions us as one of the very few consumer brands with a national and global footprint to benefit from the seismic shift under way," said Starbucks President, Chairman, and CEO Howard Schultz.
In total, Starbucks' operating income jumped 29% to $814 million for the first quarter of its 2014 fiscal year, and its operating margin increased significantly from 16.6% last year to 19.2% in the most recent quarter.
"Starbucks strong Q1 results once again demonstrate the fundamental strength of the Starbucks business, particularly noteworthy given the continued economic challenges worldwide," noted Starbucks CFO Troy Alstead. "Successful holiday sales around the globe drove healthy growth in comparable store sales which, combined with our best in class operations, drove another quarter of record operating results."
In total, Starbucks opened 417 new stores in quarter, well above the 212 opened during the first quarter of the 2013 fiscal year. It saw its total comparable-store sales -- those from company-owned stores open more than 13 months -- up 5%, as a result of a 4% increase in transactions and a 1% increase in the average ticket.
Starbucks continued to see strong results from its Americas segment, which reported an 8% gain in revenues to $3.1 billion and a 24% gain as operating income topped $732 million, and operating margin stood at 23.8% versus 20.8%. It did note that in the first quarter of last year, it incurred a number of "non-routine expenses," which resulted in lower margins in the comparable period.
Finally Starbucks reaffirmed its positive outlook on 2014, noting it expected to see its revenue rise by 10% over 2013 levels and its comparable-store sales to increase in the mid-single digits. It also noted it anticipated its margins would expand between 150 and 200 basis points. It raised its 2014 earnings per share expectations slightly, from a range of $2.55 to $2.65 reported at the end of the 2013 fiscal year, to $2.59 to $2.67 at the end of the most recent quarter.
"Our continued ability to execute at this level gives us the confidence to reaffirm our aggressive growth targets for fiscal 2014," Alstead concluded.
The article Starbucks Corporation Reports Record Revenue originally appeared on Fool.com.Fool contributor Patrick Morris owns shares of Starbucks. The Motley Fool recommends and 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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