Starbucks (SBUX) delivered fiscal fourth-quarter results on Wednesday that met analysts’ expectations, but same store sales growth that exceeded.
Here are the results:
Revenue: $6.7 billion
Comp store sales: 5% (4% expected)
Adjusted EPS: $0.70 ($0.70 expected)
Analysts polled by Bloomberg, on average, expected the following adjusted earnings of 70 cents per share on revenue of $6.69 billion.
The closely-followed same-store sales number came in at 5% globally. In the U.S., Starbucks posted same-stores sales growth of 6% versus expectations of 4.6%, while the China/Asia Pacific business saw an increase of 5% versus expectations of 3.3%.
“I’m very pleased with our strong finish to fiscal 2019, as we sustained positive momentum across each of our business segments. Our U.S. business delivered 6% comparable store sales growth in the fourth quarter, while China grew comparable store sales by 5% and total transactions by 13%. Our strong performance throughout fiscal 2019 gives us confidence in a robust operating outlook for fiscal 2020,” said CEO Kevin Johnson.
Digital has become a key driver for same-store sales. In the U.S., Starbucks Rewards now has more than 17.6 million daily active users, up 15% from a year ago.
In China, the Starbucks Rewards membership has 10 million active members, up 45% from a year ago. Starbucks Delivers is now offered across 3,000 stores in 100 cities in China. This helped push mobile orders to account for 10% of sales during the quarter. Starbucks also opened 600 new stores, surpassing the 4,000 store milestone during the quarter.
Shares of Starbucks rose more than 1.5% in the after-hours session.