Starbucks post record holiday earnings
Starbucks has stores all over the world, with their branding recognisable from Hong Kong to Hawaii. So, as is natural for a company of this size, a lot of attention is paid to their financial releases. And, in their Q1 release there were some terrific highlights, but it was not all good news from the coffee firm.
The coffee house giants have produced their Q1 earnings release for the thirteen weeks to 01 January, which, of course, encompasses the crucial Christmas period.
Global same-store sales increased 3% in total, which took into account a 3% rise in the Americas and a 5% rise across their China, Asia and Pacific region. There was, however, a 1% decrease in sales across the EMEA market. However, these figures were initially met with disappointment as analysts had predicted same-store sales growth of around 3.8%.
Starbucks recorded consolidated net revenues of $5.7 billion, which is up 7% compared to the same period the previous year.
Starbucks share price over the last five years
As of 27 January 2017: 58.46
SOURCE: Yahoo Finance
Starbucks were able to post record Q1 consolidated operating margin of 19.8%, which was up 10 basis points. Also, the company’s executives will be pleased to see that $2.1 billion had been loaded onto Starbucks Cards across the U.S and Canada in Q1, which is a record and also up 15% year-over-year.
There has certainly been a focus on the positives from Starbucks’ executives, as you would expect. Howard Schultz, chairman and CEO, said: “Starbucks is engaging more deeply - and more frequently – and expanding its base of loyal customers faster and more consistently today than ever before.”
Dominion holds Starbucks in its Global Trends Managed Fund.
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