Starbucks Posts Higher Profit as U.S. Sales Strengthen -- Update

By Micah Maidenberg 

Starbucks Corp. said stronger sales in the U.S. bolstered results in its latest quarter.

The coffee chain on Wednesday reported global comparable-store sales rose 5% in the company's fiscal fourth quarter. Analysts polled by Consensus Metrix had expected a 4% gain on that metric. Comparable sales rose 6% in the U.S., Starbucks said.

Overall, the company said quarterly revenue rose 7% from a year earlier to $6.7 billion.

Starbucks posted a quarterly profit of $802.9 million, or 67 cents a share, up from $755.8 million, or 56 cents a share, last year.

Profit of 70 cents a share, after adjustments, was in line with what analysts polled by FactSet had predicted.

Shares in Starbucks were up 1.6% in afterhours trading. The stock is up about 31% so far this year.

Starbucks also said Wednesday it believes it will earn an adjusted profit of $3 to $3.05 a share for its 2020 fiscal year.

In September, finance chief Patrick Grismer warned the company's profit growth would slow in the year because tax-related benefits wouldn't be repeated.

Starbucks also forecast a 3% to 4% gain in global comparable sales for the 2020 fiscal year.

Write to Micah Maidenberg at [e-mail]

(END) Dow Jones Newswires

October 30, 2019 16:48 ET (20:48 GMT)

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