On Thursday, Starbucks Corporation (NASDAQ: SBUX) announced the third quarter financial result, and stock price increased 0.59% to $57.94 on Friday.
According to the earnings announcement, Starbucks reported profit of $754 million, or earnings per share of $0.51, compared with $626.7 million, or earnings per share of $0.41 in the same quarter last year. Excluding certain items, profit was $0.49, compared with $0.42 last year and at the high-end of the company’s guidance. Revenue increased 7% to $5.24 billion.
“Starbucks third quarter results once again reflect strong revenue and profit growth and represent the first non-holiday quarter in which our operating income exceeded $1 billion,” said Scott Maw, CFO of Starbucks. “We are confident in the correctness of the strategic, operational and digital moves we outlined today and remain steadfast in our commitment to deliver significant, profitable growth over the long term.”
Starbucks previously expected annual sales to increase 10% or higher, now estimated only approximately 10%, with sales at stores open at least 13 months increasing by a mid-single-digit percentage, a slight downward revision.
At the same time, the company raised its profit outlook by $0.03, expecting to make $1.88 to $1.89 per share. A wage increase scheduled to go into effect in October, Chief Executive Officer Scott Maw said during the conference call, has been factored into its guidance and won’t affect the profit outlook.
Starbucks, which recently raised prices on some drinks, committed to increasing base pay for about 150,000 U.S. baristas and managers starting Oct. 3.