Starbucks Corporation (NASDAQ:SBUX) released its Q4 earnings on Thursday which continued to show strong growth for the coffee chain. The company recorded sales of $6.3 billion this past quarter, which beat estimates of $6.27 billion and is an increase of 11% from a year ago.
A big driver behind that was same-store sales, which have continued to grow at a modest 3% and came in above the 2.3% that was expected by analysts. Starbucks also added more than 600 stores during the quarter.
The downside was that profits of $756 million were down 4% from a year ago and marked a drop in overall margin. However, adjusted earnings of $0.62 per share came in higher than expectations of $0.60 and were up 13% from last year.
Overall, it was a good performance by the company, beating its key metrics and continuing to show growth despite having saturated many markets around the world.
It has been a bit of a roller coaster for Starbucks in 2018 as it was hit with controversy early in the year at one of its shops in Philadelphia, followed by a big drop in share price in June when the company announced it was planning to close 150 stores in the U.S. as a result of weak sales growth, only for the stock to recover and now be back on the rise.
As of Thursday’s close, the stock was up less than 2% year to date, but this promising earnings performance could send it up much higher, as the stock was up over 9% in after-hours trading.
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