Starbucks Q4 Profit Rises - Update

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

Seattle, Washington-based Starbucks' fourth-quarter profit rose to $801.0 million or $0.54 per share from $652.5 million or $0.43 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.55 per share for the quarter.

Net revenues for the quarter grew 16.2 percent to $5.71 billion from $4.91 billion last year. Analysts had a consensus revenue estimate of $5.68 billion for the quarter.

Global comparable store sales increased 4 percent, including a 5 percent increase in the Americas, a 1 percent increase in the China/Asia Pacific and a 1 percent decline in the EMEA. Starbucks, which has been expanding its menu offerings, said it opened 690 net new stores globally, bringing total stores to 25,085 worldwide.

"Starbucks Q4 of fiscal 2016 was the most profitable quarter - capping off the most profitable year - in our more than 24 years as a public company," said Scott Maw, CFO. "The strength and health of our business enables us to both fund profitable growth and return significant cash back to shareholders - a record $3.2 billion in fiscal 2016 alone."

For the full-year 2017, Starbucks continues to expect earnings of $2.12 to $2.14 per share.

Further, Starbucks' board boosted its quarterly dividend by 25% to $0.25 per share, payable on December 2 to shareholders of record as of November 17.

SBUX closed Thursday's trading at $51.77, down $1.21 or 2.28%, on the Nasdaq. The stock, however, gained $0.77 or 1.49% in the after-hours trade.