Starbucks Coffee (SBUX) Reports In-Line Q3 EPS, U.S. Comps Increase 5%
Starbucks Coffee (NASDAQ: SBUX) reported Q3 EPS of $0.55, in-line with the analyst estimate of $0.55. Revenue for the quarter came in at $5.66 billion versus the consensus estimate of $5.75 billion.
- Q3 Comp Store Sales Up 5% in the U.S. and Americas, 7% in China and 4% Globally
Company Announces Strategic Actions to Advance Growth Agenda and Increase Returns
Starbucks also announced several strategic actions to optimize its store portfolio, strengthen its core, accelerate execution against its long-term growth strategy and further increase returns on capital.
- Company to Assume Full Ownership of the Mainland China Market
- Company to Close all 379 Teavana Retail Stores
As reported on the Q2 call, many of the company’s principally mall-based Teavana retail stores have been persistently underperforming. Following a strategic review of the Teavana store business, the company concluded that despite efforts to reverse the trend through creative merchandising and new store designs, the underperformance was likely to continue. As a result, Starbucks will close all 379 Teavana stores over the coming year, with the majority closing by Spring 2018. The approximately 3,300 partners impacted by these closures will receive opportunities to apply for positions at Starbucks stores, as Starbucks remains on track to create 240,000 new jobs globally and 68,000 in the U.S. over the next five years.
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