Starbucks Announces First Quarter Financial Results | Financial Buzz

Starbucks Announces First Quarter Financial Results

Starbucks Corporation (NASDAQ: SBUX) announced financial results for the first quarter of fiscal 2020.  Global comparable store sales increased 5% due to an increase in average ticket sales and a 2% increase in comparable transactions.  Starbucks opened a total of 539 new stores.  Net revenues reached USD 7.1 Billion, a 7% increase compared to the prior year.  The company reported earnings per share of USD 0.74, up 21% compared to the prior year. 

“Building on solid business momentum from fiscal 2019, Starbucks performed very well throughout the first quarter, including one of the strongest holiday seasons in the history of our company. As a result, we are off to a strong start in fiscal 2020,” said Kevin Johnson, president and ceo. “Our growth was fueled by a healthy balance of comparable sales growth and new store development, as well as continued expansion of our Global Coffee Alliance with Nestlé.  Investments in our partners, beverage innovation and digital customer relationships contributed not only to strong topline growth, but also significant margin expansion in the quarter.”

“Our partners are the center of creating a special Starbucks Experience for each and every customer we serve, and I am very grateful for their extraordinary efforts through this holiday quarter. As we begin our fiscal second quarter, I want to acknowledge the dynamic situation our partners in China are navigating as health officials respond to the coronavirus. As events unfold, we will be transparent with all stakeholders in communicating how we are responding to these extraordinary circumstances and the implications for our near-term business results. We remain optimistic and committed to the long-term opportunity in China, building on our brand heritage and 20-year legacy of profitable growth,” concluded Johnson.

Starbucks returned a total of USD 1.6 Billion to shareholders through dividends and share repurchases.  The Starbucks Rewards loyalty program reached a total of 18.9 million active users in the United States, up 16% year over year.