The world’s largest coffee chain, Starbucks Corporation (NASDAQ: SBUX) said on Friday that its fiscal third-quarter net income rose 25%, aided by robust growth in same-store sales, worldwide.
Shares of Starbucks rallied7.61% to $73.36 on Friday as both earnings and revenue edged past Wall Street’s expectations. The Company also lifted its full-year earnings guidance. Starbucks now expects earnings to be in the range of $2.22 a share from $2.23 a share compared to its previous forecast of $2.12 to $2.18 a share.
For the fiscal year 2014, Starbucks anticipates earnings to come in the range of $2.55 to $2.65 a share, on assumption that revenue will grow 10% to 13%. Analysts’ consensus estimate was for earnings of $2.64 a share on revenue growth of 12%.
For the fiscal third quarter ended June 30, the Seattle WA based company reported a net income of $417.8 million or 55 cents a share compared to a profit of $333.1 million or 43 cents a share, in the same quarter of last year. Net revenue jumped 13% to $3.74 billion.
Analysts polled by Thomson Reuters had expected earnings of 53 cents a share on revenue of $3.72 billion.
Same-store-sales, a key gauge on retail chain’s performance, rose 8%, beating analysts’ expectation of 5.8% growth.
Region wise, same-store-sales climbed 9% in China / Asia Pacific region and Americas, each while in Europe, the Middle East and Africa it edged up 2% in the fiscal third quarter.
Operating margin improved to 16.4% from 14.9%, in the same quarter of last year.
The coffee chain, in order to diversify its business, has been adding more packaged items and food. Earlier this week, the Company announced plans to enter in an agreement with French Company, Danone SA to sell Greek yogurt parfaits along with some other similar products.
Besides, Starbucks recently acquired loose-leaf tea retailer, Teavana in a deal estimated at $620 million.
The Company also intends to open thousands of new stores both in Americas and China, in coming years.