Summary
Starbucks Corporation (SBUX) reported strong financial performance for the third quarter and first three quarters of fiscal year 2015, ending June 28, 2015. Total net revenues increased by 17.5% to $4.9 billion for the quarter, driven by a 19% rise in company-operated store revenues, a 7% increase in global comparable store sales, and incremental revenue from 1,592 net new store openings over the last 12 months. The acquisition of Starbucks Japan significantly contributed to the growth, particularly in the China/Asia Pacific segment. Despite an $81 million unfavorable impact from foreign currency translation, consolidated operating income saw a robust 22% increase to $939 million, with operating margins expanding by 70 basis points to 19.2%. Diluted Earnings Per Share (EPS) rose 21% to $0.41 compared to the prior year quarter. The company demonstrated healthy operational execution across its segments. The Americas segment showed a 12% revenue increase, fueled by 8% comparable store sales growth and new store openings. EMEA's transformation continued, with revenue declines largely due to foreign currency impacts, but operating margins improved significantly due to a shift towards higher-margin licensed stores. Channel Development also saw revenue growth, supported by premium single-serve and foodservice sales. The company reiterated its positive outlook for the full fiscal year 2015, expecting continued revenue growth driven by new stores and comparable sales, with consolidated operating margin expected to be flat year-over-year.
Financial Highlights
57 data points| Revenue | $4.88B |
| Cost of Revenue | $1.95B |
| Gross Profit | $2.93B |
| Operating Expenses | $4.00B |
| Operating Income | $938.60M |
| Interest Expense | $19.10M |
| Net Income | $626.70M |
| EPS (Basic) | $0.42 |
| EPS (Diluted) | $0.41 |
| Shares Outstanding (Basic) | 1.50B |
| Shares Outstanding (Diluted) | 1.52B |
Key Highlights
- 1Total net revenues for the third quarter increased 17.5% to $4.9 billion, driven by strong performance in company-operated stores and a 7% increase in global comparable store sales.
- 2The acquisition of Starbucks Japan significantly boosted revenue, particularly in the China/Asia Pacific segment, contributing $309 million in incremental revenues for the quarter.
- 3Consolidated operating income grew 22% to $939 million, with operating margin expanding by 70 basis points to 19.2%, reflecting sales leverage and strategic improvements.
- 4Diluted Earnings Per Share (EPS) for the quarter increased 21% to $0.41 compared to the prior year, demonstrating strong profitability.
- 5The Americas segment continued its growth trajectory with a 12% revenue increase, supported by robust comparable store sales growth of 8%.
- 6Capital expenditures for fiscal 2015 were expected to be approximately $1.3 billion, with a focus on new store openings and store enhancements.
- 7Starbucks continued its commitment to returning value to shareholders, with $975.9 million in share repurchases and declaration of a $0.16 per share dividend in the first three quarters of fiscal 2015.