Starbucks Q1 results: shares up after earnings revenue beats estimates

Starbucks stock rises in US after hours trading after beating revenue expectations.

Starbucks logo after Starbucks Q1 results Source: Bloomberg

Starbucks' revenue is up in its first quarter (Q1) earnings report. Starbucks' earnings beat Wall Street estimates and the stock is up in US after hours trading.

Starbucks earnings: key figures

Earnings per share (EPS) $0.61
Revenue $6.63 billion
Net income $760 million
US store sales growth 4%
China store sales growth 1%

Starbucks earnings

Starbucks’ revenue was $6.63 billion, exceeding the expected $6.49 billion. The coffee conglomerate’s earnings per share was $0.61, a decrease from $0.65 in 2018. Net income fell from $2.25 billion to $760.6 million. Starbucks’ earnings increased on the strength of same store sales growth in North America and China. Kevin Johnson, Starbucks’ chief executive officer (CEO), touted Starbucks’ Q1 revenue.

‘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,’ said Johnson.

John Culver, president of international, channel development and global coffee and tea, noted the progress of the company in China.

‘We believe we've built a strong foundation in the last 20 years in the China market and are well positioned to navigate any fluctuation that may take place’, said Culver.

What do Starbucks Q1 results mean for their share price?

Starbucks' Q1 results could bode well for their share price. Starbucks stock is already rising 2% in after hours trading in the US stock market after news of Starbucks' earnings report. Starbucks’ earnings also could mean it could increase from its current share price of $63.90.

What do Starbucks Q1 results mean compared to other restaurant stocks?

Starbucks’ Q1 results could be a positive sign for other restaurant stocks, like McDonalds, which reports its earnings next week. The increase in stores overseas could bode well for international revenue for restaurant stocks.

What is Starbucks’ dividend forecast?

Starbucks’ dividend forecast is narrowed, but still high. Starbucks raised its guidance for Q2 and it also expects revenue to grow by 5 to 7%. The coffee company is predicting same-store sales growth ranging from 3 to 5%. The corporation is projecting adjusted earnings per share between $2.61- $2.66 per share. Starbucks revenue is also expected to increase because of its partnership with Uber Eats.

Starbucks’ Q2 growth may come from more growth in China and same store sale growth in the US. If Starbucks revenue can increase with these expanded stores, Starbucks’ future earnings reports can be positive ones for shareholders.

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