Starbucks Brews Up a Profitable Third Quarter
Starbucks is More Than a Great Cup of Coffee
What could be better than sitting back with a delicious latté or cup of your favorite coffee while helping your stock portfolio grow? That’s exactly what many investors are doing these days. Increased revenues are having a significant positive impact resulting in stock values reaching an all-time high. With Starbucks outperforming analysts’ expectations for their third fiscal quarter, the company is today much more than just a leader in the specialty coffee marketplace.
What is Driving Starbucks Gains?
Starbucks’ earnings per share came in at 42 cents – higher than the 41 cents predicted by analysts. Revenues also increased for the quarter to an investor-pleasing $4.88 billion. With such financial results combined with Starbucks’ announcement that they would be repurchasing 50 million shares of stock, markets reacted with an increase in share value exceeding 5 percent.
CNBC reported that Starbucks is anticipating revenue growth in the 16 to 18 percent range for the full fiscal year. In a related press release Starbucks CEO Howard Schultz stated “Starbucks Q3 fiscal 2015 stands as among the strongest and most remarkable quarters in our over 23 years as a public company.” The majority of company revenue comes from Starbucks’ America region which includes the US, Canada, and Latin America. Starbucks experienced a 4 percent increase in consumer traffic that contributed to much of the gains.
What Else is Starbucks Doing for the Future?
Starbucks also announced in July that they have formed an agreement with PepsiCo for distribution of their ready-to-drink beverages in new retail markets in Latin America. This will include such products as Starbucks Frappuccino, Starbucks Double Shot, and others.
Schultz also praised Starbucks’ success in their initial experience with mobile ordering and mobile payment processing that is currently being tested in New York City, citing the results as “nothing short of extraordinary.” As tech-savvy consumers are increasingly taking advantage of such mobile technology Starbucks will certainly see benefits from their investment in such applications, which are available on both iPhone and Android platforms.
With such forward thinking and positive results Starbucks continues to be a well-respected leader in their business sector with the highest level of brand recognition. These attributes combine to make the company attractive to an increasing spectrum of investors.
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