Coffee giant Starbucks (SBUX) reported a slight beat in its quarterly earnings results on Thursday.
For the third quarter, Starbucks reported adjusted earnings of 62 cents per share, beating analysts’ estimates of 61 cents. Revenue for the quarter came in at $6.31 billion versus estimates for $6.26 billion.
Comparable stores sales were up 1% in the U.S. and globally surpassing estimates of 0.8%. The company expects full-year global comp sales growth to be “just below the 3-5% targeted range.”
Shares were up about 1% in the after-hours session.
“Starbucks record performance in Q3 reflects successful execution against our strategic growth priorities and our commitment to deliver predictable, sustainable growth at scale — and meaningful increases in long-term value — for our shareholders,” CEO Kevin Johnson said. “We remain confident in our global growth strategies, in the sustainability of our leadership position around all things coffee and tea and in our leadership teams around the world to navigate our next phase of growth.”
China has been an area of focus when it comes to growth for Starbucks. Net revenues for China/ Asia Pacific grew 46% year-over-year, driven by the ownership change of the East China business. The company opened 746 new stores in the last 12 months in the region.
During the quarter, 1.9 million people joined the Starbucks Rewards loyalty program, a 14% jump from the same period last year. More than 40% of U.S. sales are from the members enrolled in the loyalty program. Mobile Order and Pay now account for 13% of U.S. transactions.
Starbucks opened 511 net new stores in the quarter and now operates 28,720 stores. The company expects to open 2,300 new Starbucks stores in 2018.
In June, Howard Schultz stepped away from his role as executive chairman to explore a “range of options for myself, from philanthropy to public service.”
Julia La Roche is a finance reporter at Yahoo Finance. Follow her on Twitter. Send tips to firstname.lastname@example.org.
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