Starbucks reports net revenue up 8% to $6.8bn in Q3 2019

26th July 2019 (Last Updated July 26th, 2019 14:21)

Starbucks has reported net revenue increased by 8% to $6.8bn for the third quarter (Q3 2019), ending 30 June 2019.

Starbucks reports net revenue up 8% to $6.8bn in Q3 2019
Starbucks warns deadly coronavirus outbreak could affect the company’s financial performance. Credit: Starbucks Corporation.

Starbucks has reported its net revenue increased by 8% to $6.8bn for the third quarter (Q3 2019), ending 30 June 2019.

The coffee chain also reported an operating income of $1.121bn, an 8% increase compared to $1.038bn for the same period in the previous year.

Net earnings per common share – diluted was $1.12, up 84% over the prior year and GAAP operating margin, inclusive of restructuring and impairment charges, declined ten basis points year-over-year to 16.4%.

Starbucks president and CEO Kevin Johnson said: “Starbucks delivered strong operating performance in the third quarter, further demonstrating that our ‘Growth at Scale’ agenda is working.

“Our two targeted long-term growth markets, the US and China, performed extremely well across a number of measures as a result of our focus on enhancing the customer experience, driving new beverage innovation and accelerating the expansion of our digital customer relationships.”

In addition, the company reported a 6% increase in global comparable store sales, due to a 3% increase in average ticket and a 3% increase in transactions.

The company opened 442 net new shops during the quarter and had 30,626 outlets at the end of the quarter, a 7% increase over the prior year.

Johnson added: “Starbucks continues to be focused and disciplined in the execution of our three key strategic priorities that we established last year: accelerating growth in the US and China, expanding the global reach of the Starbucks brand through our Global Coffee Alliance with Nestlé, and increasing shareholder returns.

“With our efforts to streamline the company and elevate the Starbucks brand, we are positioning the company to deliver predictable and sustainable operating results while building an enduring company that creates meaningful long-term value for Starbucks shareholders.”