Starbucks Revenue and Profit Grow

Starbucks Corp. said revenue jumped 18% in the June quarter, boosting profit as traffic increased world-wide.

Shares increased about 3.6% in recent after-hours trading as the company also raised its full-year earnings outlook, saying it sees adjusted profit in the range of $1.57 to $1.58 a share. The company had previously forecast $1.55 to $1.57.

Starbucks's board has also authorized the repurchase of an additional 50 million shares under its continuing stock-buyback program—which would be worth about $2.78 billion as of Thursday's closing price. This is in addition to the 11 million shares that remain available for repurchase due to an existing agreement.

The Seattle-based company has been expanding geographically and embracing digital partnerships. It has agreed to market, sell and distribute its drinks in Latin America and will also open stores in South Africa starting next year.

In the most recent quarter, sales at company-operated stores in the U.S. open at least 13 months rose 8% during the latest quarter as traffic grew by 4%. Starbucks' comparable sales world-wide also rose 7%, also with a 4% traffic increase.

Overall, Starbucks reported a profit of $626.7 million, or 41 cents a share, up from $512.6 million, or 34 cents a share, a year earlier.

Excluding special items, per-share earnings were 42 cents.

Revenue increased to $4.88 billion, due mostly to revenue from the acquisition of Starbucks Japan and the opening of 1,592 net new stores in the past 12 months.

Analysts had expected earnings of 41 cents a share on revenue of $4.86 billion, according to Thomson Reuters.

For its current quarter, the company forecast per-share earnings of 42 cents to 43 cents. Analysts expected per-share profit of 43 cents.

Starbucks said it now expects full-year capital expenditures of $1.3 billion, down from $1.4 billion.

The company has rolled out mobile-payment options in more states, and recently signed partnerships with Spotify and ride-sharing business Lyft Inc.

Starbucks also recently tapped Kevin Johnson, a former chief executive at Juniper Networks Inc. and 16-year veteran of Microsoft Corp., as president.

Write to Angela Chen at [e-mail]

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