Starbucks reports Q1 fiscal 2019 results
Starbucks’ revenue rose in its first quarter, beating Wall Street estimates.
The company’s total revenue for its 13-week fiscal first quarter ending December 30, 2018, was $.6.63bn, up from the predicted $6.49bn. Earnings per share was $0.61, a decrease from $0.65 in 2018. Net income fell from $2.25 billion to $760.6 million.
Kevin Johnson, Starbucks president and ceo said: “Starbucks delivered solid operating results in the first quarter, demonstrating continued momentum in our business, as we drive our growth-at-scale agenda with focus and discipline. We are particularly pleased with the sequential improvement in quarterly comparable store transactions in the US, underpinned by our digital initiatives and improved execution of our in-store experience. With this solid start to the fiscal year, we are on track to deliver on our full-year commitments.”
“Comprehensive efforts to streamline our business have allowed us to focus on three key strategic initiatives that position Starbucks for long-term success: accelerating growth in our targeted markets of the US and China, expanding the global reach of the Starbucks brand through our Global Coffee Alliance with Nestlé, and increasing shareholder returns. Combined with our efforts to build and amplify the Starbucks brand, we expect these initiatives will position the company to drive predictable, sustainable growth and shareholder returns for years to come,” concluded Johnson.
Looking to Q2, revenue is expected to increase again following Starbucks’ new partnership with delivery service, Uber Eats. Starbucks Delivers currently operates in Miami and San Diego, soon rolling out to Boston, Chicago, Los Angeles, New York and Washington, DC. Later in the year, the company hopes to expand Starbucks Delivers to the UK, beginning with London.