LONDON, UK / ACCESSWIRE / December 13, 2017 / Active-Investors free earnings report on Starbucks Corp. (NASDAQ: SBUX) has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=SBUX. The Company posted its financial results on November 02, 2017, for the fourth quarter of the fiscal year 2017. The coffeehouse chain's adjusted EPS was in-line with analysts' expectations. Register today and get free access to our complimentary member's area where many more reports are available:
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Earnings Highlights and Summary
For the three months ended October 01, 2017, Starbucks' total net revenue decreased 0.2% to $5.70 billion from $5.71 billion in Q4 FY16. The total net revenue figures were below analysts' expectations of $5.73 billion.
During FY17, the Company's total net revenue increased 5% to $22.39 billion from $21.32 billion in the last year.
During Q4 FY17, Starbucks opened 603 net new stores compared to 690 in Q4 FY16. For the reported quarter, the Company's comparable store sales growth was 3%, driven by a 2% increase in average ticket and a 1% increase in transactions.
During Q4 FY17, Starbucks' operating income decreased 16.7% to $1.02 billion from $1.23 billion in the same period of last year. For the reported quarter, the Company's operating margin decreased 360 basis points to 17.9% of revenue from 21.5% of revenue in the fourth quarter of last year. For the reported quarter, the Company's adjusted operating margin decreased 90 basis points to 20.0% of revenue from 20.9% of revenue in the fourth quarter of last year.
During FY17, the Company's operating income decreased 0.9% to $4.13 billion from $4.17 billion in the last year, while the operating margin decreased 110 basis points to 18.5% of revenue from 19.6% of revenue in FY16.
During Q4 FY17, Starbucks' earnings before tax (EBT) decreased 5.2% to $1.15 billion from $1.22 billion in the comparable period of last year. For the reported quarter, the Company's EBT margin decreased 110 basis points to 20.2% of revenue from 21.3% of revenue in the fourth quarter of last year.
For the reported quarter, Starbucks' net income decreased 1.6% to $788.5 million from $801.0 million in Q4 FY16. During Q4 FY17, the Company's diluted earnings per share (EPS) was at par with the $0.54 reported in the corresponding period of last year. During Q4 FY17, the Company's adjusted diluted EPS increased 10% to $0.55 on a y-o-y basis from $0.50 in Q4 FY16, and was in-line with analysts' expectations of $0.55.
During FY17, the Company's net income increased 2.4% to $2.88 billion from $2.82 billion in the last year, while the Company's diluted EPS increased 3.7% to $1.97 from $1.90 in the last year.
America - During Q4 FY17, the Company's America segment's net revenue decreased 0.5% to $3.95 billion from $3.97 billion in the same period of last year. For the reported quarter, the segment's store sales growth was 2%. For the reported quarter, the segment's operating income decreased 17.6% to $903.7 million from $1.10 billion in Q4 FY16. For the reported quarter, the segment's store operating expenses ratio increased 210 basis points to 37.6% of company-operated store revenues from 35.5% of company-operated store revenues in Q4 FY16.
China/Asia/Pacific (CAP) - During Q4 FY17, the Company's CAP segment's net revenue increased 2.5% to $859.9 million from $839.2 million in the comparable period of last year. For the reported quarter, the segment's store sales growth was 2%. For the reported quarter, the segment's operating income increased 4.8% to $201.7 million from $192.4 million in Q4 FY16. For the reported quarter, the segment's store operating expenses ratio increased 10 basis points to 29.4% of company-operated store revenues from 29.3% of company-operated store revenues in Q4 FY16.
Europe, Middle-East, and Africa (EMEA) - During Q4 FY17, the Company's EMEA segment's net revenue decreased 0.1% to $269.9 million from $270.2 million in the corresponding period of last year. For the reported quarter, the segment's operating income decreased 24% to $34.8 million from $45.8 million in Q4 FY16. For the reported quarter, the segment's store operating expense ratio was 44.6% of company-operated store revenues compared to 32.8% of company-operated store revenues in Q4 FY16.
Channel Development - During Q4 FY17, the Company's Channel Development segment's net revenue decreased 0.7% to $514.9 million from $518.5 million in the same period of last year. For the reported quarter, the segment's operating income increased 1% to $246.7 million from $244.3 million in Q4 FY16.
As on October 01, 2017, Starbucks' cash and cash equivalents decreased 15.7% to $2.46 billion from $2.13 billion as on October 02, 2016. For the reported quarter, the Company's long-term debt increased 23.5% to $3.93 billion from $3.19 billion in Q4 FY16.
For the reported quarter, the Company's net accounts receivable increased 13.2% to $870.4 million from $768.8 million in Q4 FY16. For the reported quarter, the Company's accounts payable increased 7.1% to $782.5 million from $730.6 million in the fourth quarter of 2016.
During FY17, Starbucks' cash provided by operating activities decreased 8.8% to $4.17 billion from $4.58 billion in the last year.
Stock Performance Snapshot
December 12, 2017 - At Tuesday's closing bell, Starbucks' stock slightly climbed 0.34%, ending the trading session at $59.27.
Volume traded for the day: 6.04 million shares.
Stock performance in the last month – up 3.91%; previous three-month period – up 9.17%; past twelve-month period – up 0.85%; and year-to-date – up 6.75%
After yesterday's close, Starbucks market cap was at $84.53 billion.
Price to Earnings (P/E) ratio was at 30.03.
The stock has a dividend yield of 2.02%.
The stock is part of the Services sector, categorized under the Specialty Eateries industry.
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