Starbucks Q3 reported soaring sales in China and the United States, with same-store sales growing at a three-year high last quarter

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Starbucks reported on Thursday (25th) that global same-store sales rose 6%, the biggest increase in three years and better than market expectations, thanks to a sharp increase in sales in the United States and China. Starbucks upgraded its full-year revenue and profit outlook, and its shares rose 6% in after-hours trading.

Q3 same-store sales in the Americas grew by 7 per cent, while those in China and Asia Pacific grew by 5 per cent.

CEO Kevin Johnson led Starbucks to expand the Chinese market, taking advantage of the increase in Chinese consumers' preference for coffee and the growth of the middle class. In the US market, try to inject new vitality, improve the supply of items and cooperate with Uber Eats to launch coffee delivery.

These efforts led to excellent results last quarter and revised this year's full-year earnings per share to between $2.86 and $2.88. Previous estimates were $2.40 to $2.44.

Starbucks earned a net profit of $1.37 billion, or $1.12 a share, last quarter.

Key data of Starbucks Q3 Financial report

Net revenue: $6.8 billion, better than market expectations of $6.685 billion, better than $6.31 billion in the same period last year, up 8%

Operating margin: 16.4%, down 10% from the same period last year

EPS:0.78 USD, up 26%, better than the market expectation of US $0.72

Global same-store sales: up 6 per cent-the highest level since 2016 and well above Consensus Metrix's expectations of 4.2 per cent.

Starbucks reported strong results in its latest quarter, raising its full-year outlook to $2.8 to $2.82 per share, compared with a previous forecast of $2.4 to $2.44. Analysts expect it to be $2.78.

Its global same-store sales are expected to grow by about 4% for the full year, compared with Starbucks' previous expectations of 3% to 4%.

CEO Kevin Johnson said in a financial statement: "as we focus on improving the customer experience in two major markets, the Chinese and US markets, policies including the promotion of new beverage products and good interaction with online consumers are excellent in a number of administrative performance."

Nitrogen cold drink absorbs gold

In China, Starbucks' online orders and transactions are also expanding, which is good for sales this quarter.

As temperatures rose in the US this summer and Starbucks refocused on beverages such as nitrogen cold extracts, the company said "beverage innovation" had boosted sales in all three of its regional markets.

After preliminary trials in several big cities, Starbucks is expected to expand its partnership with Uber Eats in the US next year, which could allow Starbucks to promote traditionally slow lunchtime sales, but competition will be fierce because many restaurants offer similar options.

Last year, Starbucks reduced its European operations and sold parts of its market to Alsea SAB, a licensee.

So far, Starbucks' revenue has grown by 41% in 2019.

Source reference: Hang Heng net / Economic Daily

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