Starbucks sales jump on strong demand

(Sharecast News) - Starbucks Corp reported a jump in fourth-quarter sales on Thursday, boosted by strong demand in North America.

The coffee chain, which has more than 38,000 stores worldwide, said consolidated net revenues rose 11% in the 13 weeks to 1 October to $9.4bn.

Comparable store sales rose 8% in North America and 5% internationally; overall, like-for-like sales were up 8%, ahead of analyst expectations for rise of around 6.5%.

Non-GAAP earnings per share were $1.06, up 31% on the same quarter a year previously and ahead of forecasts for 97 cents.

Starbucks benefited from both a higher number of transactions and larger orders during the quarter. In North America, there was a 6% increase in the average ticket and 2% improvement in comparable transactions.

In China, along with the US one of Starbucks' biggest markets, comparable transactions were ahead 8% but the average ticket declined 3%.

Laxman Narasimhan, chief executive, said: "We finished our fourth quarter and full fiscal year strong, delivering on the higher end of our full-year guidance.

"As we enter the current year, in the face of macro uncertainty, we remain confident in the momentum throughout our business and headroom globally.

"We expect sustained momentum throughout the company for years to come."

Starbucks posted an 8% jump in full-year comparable sales worldwide, with the average ticket up 5%.

Consolidated net revenues rose 12% to $36bn, while EPS was up 20% at $3.54.

As at 1145 GMT, Starbucks was up 7% in pre-market trading.