The coffee chain was forecast to deliver earnings of 43 cents per share on $4.9 billion in revenue, according to a Thomson Reuters estimate. Starbucks reports quarterly earnings on Thursday, October 29, 2015.
Advertisement
Starbucks’ mobile-payments system, which lets customers pay with their smartphones, now makes up about 21 per cent of United States store transactions.
“Technology is what’s driving their business, so they need to continue to invest in it”, said Peter Saleh, an analyst at BTIG. The average estimate of 14 analysts surveyed by Zacks Investment Research was for earnings of 44 cents per share.
“Starbucks record Q4 financial results, highlighted by stunning comp store sales increases of 8% globally, 9% in the US driven by a 4% increase in global traffic, demonstrate the strength and relevance of the Starbucks brand around the world”, Starbucks CEO Howard Schultz said in a statement.
Starbucks has been trying to improve the quality and selection of its food to help increase sales domestically. It recently introduced seasonal items, such as apple pound cake, and new lunch items, including a peanut butter and jelly box, as well as a barbecue beef brisket sandwich.
SSS Momentum: We model F4Q15 sales growth of 18% with 8% US SSS, ~1% ahead of consensus, which would represent the third consecutive quarter with high-single-digit US SSS.
With this feature expanding to more stores nationwide, and probably across borders in the coming years, we can expect further improvement in the revenue growth and increased efficiency. The pace and full-year EPS are estimated to be $1.59 up from $1.37 last year.
Declining coffee prices also have been helping Starbucks’ profit. The company expected per-share profit of 38 cents to 39 cents. The company has not even posted one moderate result over the past 20 months, and with accelerated advancements in the operations, such as the introduction of Starbucks Roastery and Tasting rooms, it is more likely for the company to post another strong comparable store sales growth.
Advertisement
Starbucks also forecast fiscal 2016 earnings, excluding items, of $1.87 to $1.89 per share, in line with analysts’ average call for $1.88 per share.
