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

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

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!