Starbucks Corp. Thursday reported quarterly earnings and revenue that topped analysts’ estimates, but the coffee giant still faces a slowing same-store sales growth.
The company said profit rose 23 percent to $801 million, or 54 cents a share, in the fourth-quarter. Excluding certain items, adjusted earnings were 56 cents a share, compared with 43 cents a share a year earlier. Analyst had projected a profit of 55 cents a share. Revenue rose 16 percent to $5.71 billion in the fiscal fourth quarter ended Oct.2, topping analysts’ average estimates of $5.68 billion.
“Starbucks record Q4 and fiscal 2016 financial and operating results in the face of ongoing economic, consumer and geopolitical headwinds, and the significant investments we continue to make in our people and our business, once again demonstrate the power, relevance and resilience of the Starbucks business and brand,” Howard Schultz, Starbucks chairman and CEO, said in a statement.
However, global same-store-sales, the key metric for restaurant, only rose 4 percent in the quarter, missing analysts’ forecasts of 4.9 percent. Same-store sales rose 5 percent and 6 percent respectively in U.S. and China, both beating the Wall Street estimates. But it fell 1 percent in Europe, the Middle East and Africa. The company now double down on China. It plans to double its locations to about 5,000 cafes in the world’s second-biggest economy by 2021.
“The market is a little bit fickle right now,” Russo said. “There’s a lot of nervousness. We’ve got to get this election behind us.”