Starbucks raises full-year profit forecast, shares rise

(Reuters) - Starbucks Corp raised its full-year profit forecast and reported quarterly profit and same-store sales that beat Wall Street estimates on Thursday, helped by higher prices of its coffees and ramped up delivery options in the United States. Starbucks' shares, which have risen about 20 percent this year, rose 2 percent and were set to hit a record high on Friday. The coffee chain has been beefing up its delivery services in the United States, where the market is overcrowded with restaurants and coffee-shops, especially in urban areas.

Reuters April 26, 2019 03:05:33 IST
Starbucks raises full-year profit forecast, shares rise

Starbucks raises fullyear profit forecast shares rise

(Reuters) - Starbucks Corp raised its full-year profit forecast and reported quarterly profit and same-store sales that beat Wall Street estimates on Thursday, helped by higher prices of its coffees and ramped up delivery options in the United States.

Starbucks' shares, which have risen about 20 percent this year, rose 2 percent and were set to hit a record high on Friday.

The coffee chain has been beefing up its delivery services in the United States, where the market is overcrowded with restaurants and coffee-shops, especially in urban areas.

It has also been offering healthier beverages in its U.S. cafes and introducing lunch menus, while also focussing on online ordering service through "mobile order and pay" and loyalty programs.

This helped the company report 4 percent growth at established U.S. cafes, its largest market. Analysts were expecting Starbucks to bring in 3.58 percent, according to IBES data from Refinitiv.

Starbucks also raised its adjusted profit forecast for the year to between $2.75 and $2.79 per share from its previous outlook of between $2.68 and $2.73 per share, as it expects growth in operating margins in the Americas.

Net earnings attributable to the company rose to $663.2 million, or 53 cents per share, in the second-quarter ended March 31, from $660.1 million, or 47 cents per share, a year earlier.

Excluding certain items, the company earned 60 cents, 4 cents more than the estimate.

Total net revenue rose 4.5 percent to $6.31 billion, but was slightly below the estimate of $6.32 billion.

(Reporting by Aishwarya Venugopal and Nivedita Balu in Bengaluru; Editing by Arun Koyyur)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Airline easyJet's first-half loss widens as COVID-19 hurts travel, seeks cash
Business

Airline easyJet's first-half loss widens as COVID-19 hurts travel, seeks cash

(Reuters) - Budget airline easyJet on Wednesday reported a bigger loss for the first half as it took a 160-million-pound hit ($199 million) from failed fuel hedging as the COVID-19 pandemic brought global air travel to a virtual standstill. The London-listed company reported a pretax loss of 353 million pounds for the six months ended March 31 from a loss of 272 million pounds last year. Revenue rose 1.6%, though easyJet took a hit from strikes in France, and storms Ciara and Dennis.

Bayer settles Roundup cancer lawsuits for up to $10.9 billion
Business

Bayer settles Roundup cancer lawsuits for up to $10.9 billion

FRANKFURT (Reuters) - Bayer AG on Wednesday said it agreed to settle U.S.

Sudan to establish trade financing fund in face of forex shortage
Business

Sudan to establish trade financing fund in face of forex shortage

KHARTOUM (Reuters) - Sudan will create a trade financing fund with a portfolio of $2 billion to aid the import and export of key commodities such as wheat, the Finance Ministry said, as the supply of foreign currency in circulation dwindles. Sudan's economy is at risk of freefall, hammered by an inflation rate of more than 100% and frequent shortages of bread, fuel and medicine. The country's currency has also fallen to a record low of 150 Sudanese pounds to the dollar on the black market compared with 55 at the official rate