Starbucks Corporation (SBUX) Third Quarter Results Beat Earnings Expectations

Starbucks Corporation (NASDAQ:SBUX) has recently declared its results for the third quarter of fiscal year 2014. Bloomberg TV’s Yang Yang analyzed better than estimated third quarter results posted by the $59.2 billion market capped beverage giant, on its popular ‘In The Loop‘ programming segment, and highlighted how “food actually drove” the “company sales and bottom-line”. The program also threw light on the new impetus being provided by Starbucks Corporation (NASDAQ:SBUX) Chairman of the Board, President, Chief Executive Officer Howard Schultz to experiment with a new lunch menu.

Starbucks Corporation (NASDAQ:SBUX)

Yang Yang explained that, “Starbucks, as we all know, definitely a coffee company at its core, but for the third quarter, it was actually food that came out as the standout” performance. She also agreed with the analyst and the company’s management description that third quarter performance “was an outstanding and strong quarter” for the world’s top coffee maker.

Yang then proceeded to list out the highlights from the Seattle headquartered firm’s third quarter earnings report.

“They clocked in net income of some $513 million, about a 23% gain from a year ago. Earnings per share in at 67 cents, beating the street estimate by one cent, on revenue of $4.2 billion for the quarter. Global same-store sales growth, (that is a key number) clocked in at 6% for an impressive 18th consecutive quarter of com growth of 5% or more.”

Yang then walked through the market region wise break up in same store sales data, and pointed out that China, Asia Pacific and home market of U.S grew at an impressive 7 percent, while the Americas grew at 6 percent, followed by Europe, Middle East and Africa, which came in at 3 percent. She also went on to underline that, “Food drove 2 percent of comp growth in the united states alone”.

Looking ahead, she pointed to the optimism Starbucks Corporation (NASDAQ:SBUX) has voiced based on “the fact that as coffee costs rise, they have locked in about 60% of coffee prices for the next year, giving them a big leg up on their competitors”.  She also underlined that optimism that is being displayed by the coffee chain major by saying that, “They have actually increased their earnings per share estimate for the current quarter up by 2 cents, now it is at 76 Cents”.

The report then went on to underline the changes that are being embraced by Starbucks Corporation (NASDAQ:SBUX)  by pointing out Chairman and Chief Executive, Howard Schultz’s, comments after the earnings call in which he is quoted saying, “expect the lunch hour to look different.” These changes include increasing food items on the menu, opening up more number of 24 hour stores and strengthening its mobile ordering platform.

Disclosure: none

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!