Starbucks Corporation Reports Unaudited Consolidated Earnings Results for the First Quarter Ended January 1, 2017; Reiterates Earnings Guidance for the Fiscal Year 2017
January 26, 2017 at 09:03 pm
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Starbucks Corporation reported unaudited consolidated earnings results for the first quarter ended January 1, 2017. For the quarter, the company reported total net revenues of $5,732.9 million compared to $5,373.5 million a year ago. The increase was primarily driven by incremental revenues from the opening of 2,163 net new stores over the past 12 months and 3% growth in global comparable store sales. Operating income was $1,132.6 million compared to $1,058.0 million a year ago. The increase was partially offset by higher investments in store partners (employees), primarily in the Americas segment. Earnings before income taxes were $1,132.9 million compared to $1,049.6 million a year ago. Net earnings attributable to the company were $751.8 million or $0.51 per diluted share compared to $687.6 million or $0.46 per diluted share a year ago. Non-GAAP operating income was $1,146.6 million compared to $1,070.3 million a year ago. Non-GAAP net earnings per share were $0.52 compared to $0.46 a year ago.
The company reiterated earnings guidance for the fiscal year 2017. For 2017, consolidated revenue growth now expected to be in the range of 8% to 10%. The company continues to expect GAAP EPS in the range of $2.09 to $2.11 and non-GAAP EPS in the range of $2.12 to $2.14.
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 Unaudited Consolidated Earnings Results for the First Quarter Ended January 1, 2017; Reiterates Earnings Guidance for the Fiscal Year 2017