Summary
Starbucks Corporation's Q2 2015 report (period ending March 28, 2015) showcases robust growth driven significantly by the acquisition of Starbucks Japan and strong comparable store sales. Total net revenues surged by 18% year-over-year to $4.6 billion, boosted by a 7% increase in global comparable store sales and contributions from new store openings. The company also saw a substantial operating income increase of 21% to $778 million, with operating margins expanding by 40 basis points, despite the accounting impacts of the Starbucks Japan acquisition. Diluted earnings per share rose 18% to $0.33. The acquisition of Starbucks Japan has been a major transformative event, with its consolidation significantly impacting the China/Asia Pacific segment's revenue growth, though also leading to a notable decrease in its operating margin due to accounting adjustments. Management highlighted the Americas segment's consistent performance, driven by both transaction and ticket growth, and continued investments in store partners. The company reaffirmed its full-year fiscal 2015 outlook, anticipating continued revenue growth from the Starbucks Japan acquisition, new store openings (approximately 1,650 net new stores), and mid-single-digit global comparable store sales growth. While expecting consolidated operating margin to be flat year-over-year, Starbucks anticipates strong EPS growth for the full fiscal year.
Financial Highlights
56 data points| Revenue | $4.56B |
| Cost of Revenue | $1.86B |
| Gross Profit | $2.70B |
| Operating Expenses | $3.84B |
| Operating Income | $777.50M |
| Interest Expense | $16.90M |
| Net Income | $494.90M |
| EPS (Basic) | $0.33 |
| EPS (Diluted) | $0.33 |
| Shares Outstanding (Basic) | 1.50B |
| Shares Outstanding (Diluted) | 1.52B |
Key Highlights
- 1Total net revenues increased 18% to $4.6 billion, driven by a 7% increase in comparable store sales and the acquisition of Starbucks Japan.
- 2Operating income grew 21% to $778 million, with operating margin expanding by 40 basis points to 17.0%.
- 3Diluted earnings per share (EPS) increased 18% to $0.33 compared to the prior year quarter.
- 4The acquisition of Starbucks Japan was completed, significantly boosting the China/Asia Pacific segment's revenue but impacting its operating margin due to accounting changes.
- 5Americas segment demonstrated strong performance with 11% revenue growth, fueled by a 7% comparable store sales increase and new store openings.
- 6Starbucks reaffirmed its full-year fiscal 2015 outlook, expecting continued revenue growth and strong EPS growth.
- 7The company repurchased approximately $342 million of common stock and declared a quarterly cash dividend of $0.16 per share.