Starbucks Corporation Reports Consolidated Earnings Results for the First Quarter Ended December 29, 2013; Reaffirms Earnings Guidance for the Second Quarter, Third Quarter, Fourth Quarter and 2014
January 23, 2014 at 09:06 pm
Share
Starbucks Corporation reported consolidated earnings results for the first quarter ended December 29, 2013. For the quarter, the company's sales were $4,239.6 million against $3,793.2 million a year ago. EPS was $0.71, ahead of expectations of $0.69 per share. Global comp store sales grew 5%, driven by a 4% increase in traffic. Profit rose by 25% as it benefited from lower coffee costs and stronger sales around the world. The company earned $540.7 million against $432.2 million a year ago. Operating income increased 29% to $814 million against $631 million a year ago.
The company reaffirmed earnings guidance for the second quarter, third quarter, fourth quarter and 2014. For the second quarter, EPS now expected to be in the range of $0.54 to $0.55.
For the third quarter, EPS now expected to be in the range of $0.64 to $0.66.
For the fourth quarter, EPS now expected to be in the range of $0.70 to $0.75.
For 2014, the company's earnings per share now expected to be in the range of $2.59 to $2.67. Revenue growth of 10% or greater. Global comparable store sales growth in the mid single digits. Consolidated operating margin improvement of approximately 150 to 200 basis points over FY13: Americas: moderate improvement over fiscal year 2013; EMEA: operating margin improving toward the high single digits; -- CAP: operating margin percentage moving toward the low 30's; Channel Development: moderate improvement over fiscal year 2013; Consolidated tax rate of approximately 34.5%. Capital expenditures of approximately $1.2 billion.
Starbucks Corporation specializes in owning and operating coffee shops. The group also develops a coffee roasting activity. Net sales break down by source of revenue as follows:
- sales within company-operated coffee shops (81.9%): as of October 1st, 2023, owned a network of 19,592 coffee shops under the Starbucks Coffee®, Teavana®, Ethos®, Starbucks Reserve® and Princi® brands;
- sales within licensed stores (12.5%): 18,446 licensed stores located primarily in the United States (6,701), Korea (1,870), Latin America (1,649) and the United Kingdom (911);
- other (5.6%): sales of coffee, beverages and food products for companies, hotels, hospitals, airlines, etc.
Net sales break down by family of products between beverages (60.3%), food (18.3%) and other (21.4%).
Net sales are distributed geographically as follows: the United States (73.4%), China (8.6%) and other (18%).
Starbucks Corporation Reports Consolidated Earnings Results for the First Quarter Ended December 29, 2013; Reaffirms Earnings Guidance for the Second Quarter, Third Quarter, Fourth Quarter and 2014