Starbucks Corporation (NASDAQ: SBUX) had some jump in its shares early Friday morning, after the company reported better-than-expected earnings for its first quarter. The company issued strong FY19 adjusted earnings guidance and sees global comps up 3-4% year-over-year.
GAAP Earnings per Share of $0.61, down 61% over the prior year, on revenues of $4.606 billion, an 8% improvement over $4.257 billion in the prior-year quarter.
Operating income grew 3% to $1.0 billion in Q1 FY19, up from $977.7 million in Q1 FY18. Operating margin of 22.0% declined 100 basis points, primarily due to higher wage and benefit-related investments in our store partners (employees), product-related mix shifts, and higher restructuring costs and asset impairments, partially offset by sales leverage.
Said CEO Kevin Johnson, "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 U.S., 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."
The company opened 541 net new stores in Q1, yielding 29,865 stores at the end of the quarter, a 7% increase over the prior year. Over two-thirds of the net new store openings were outside the U.S.; approximately 50% were licensed.
The company returned $5.5 billion to shareholders through a combination of share repurchases and dividends
Shares climbed $2.49, or 3.9%, to $67.23
