Starbucks Profit Rises, But Revenue Misses Street

(RTTNews) - Starbucks Corp. (SBUX), the world's largest specialty coffee retailer, Thursday reported an increase in profit for the first quarter, driven largely by growth in China and Americas.

Seattle, Washington-based Starbucks' first-quarter profit rose to $2.25 billion or $1.57 per share from $751.8 million or $0.51 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.57 per share for the quarter.

Net revenues for the quarter grew 5.9 percent to $6.07 billion from $5.73 billion last year. Analysts had a consensus revenue estimate of $6.18 billion for the quarter.

Global comparable store sales increased 2 percent, including a 2 percent increase in the Americas and US, a 1 percent increase in the China/Asia Pacific. Starbucks, which has been expanding its menu offerings, said it opened 700 net new stores globally, bringing total stores to 28,039 worldwide.

"Starbucks reported another quarter of record financial results in Q1 of fiscal 2018, with consolidated revenues up 6% over last year - up 7% excluding 1% for the impact of streamlining activities in the quarter. China grew revenues 30% in Q1, with the strategic acquisition of East China positioning us to accelerate our growth in the key China market," said Kevin Johnson, president and ceo.

For the full-year 2018, Starbucks now expects earnings of $2.48 to $2.53 per share, up from earlier forecast of $2.30 to $2.33 per share. The outlook was raised to reflect tax cuts.

SBUX closed Thursday's trading at $60.55, down $0.28 or 0.46%, on the Nasdaq. The stock further dropped $1.55 or 2.56% in the after-hours trade.