Starbucks Reports Q1 Fiscal 2019 Results

Q1 Consolidated Net Revenues Up 9% to Record $6.6 Billion

Q1 Comparable Store Sales Up 4% Globally Driven by 4% Growth in the U.S.

China Comparable Store Sales Up 1% in Q1 and Total China Stores Up 18% Versus Prior Year

GAAP EPS of $0.61; Non-GAAP EPS of $0.75, Up 15% Year-Over-Year Including Income Tax Favorability

Active Starbucks RewardsTM Membership in the U.S. Increases 14% Year-Over-Year to 16.3 Million

Starbucks Corporation (NASDAQ: SBUX) today reported financial results for its 13-week fiscal first quarter ended December 30, 2018. GAAP results in fiscal 2019 and fiscal 2018 include items which are excluded from non-GAAP results. Please refer to the reconciliation of GAAP measures to non-GAAP measures at the end of this release for more information.

“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,” said Kevin Johnson, president and ceo. “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.”

“Comprehensive efforts to streamline our business have allowed us to focus on three key strategic initiatives that position Starbucks for long-term success: accelerating growth in our targeted markets of the U.S. and China, expanding the global reach of the Starbucks brand through our Global Coffee Alliance with Nestlé, and increasing shareholder returns.  Combined with our efforts to build and amplify the Starbucks brand, we expect these initiatives will position the company to drive predictable, sustainable growth and shareholder returns for years to come,” concluded Johnson.

PDF: Detailed financial data

Q1 Fiscal 2019 Highlights:

  • Global comparable store sales increased 4%, driven by a 3% increase in average ticket
    • Americas and U.S. comparable store sales increased 4%, with transactions flat
    • CAP comparable store sales increased 3%, including 1% transaction growth; China comparable store sales increased 1%, with transactions down 2%
  • 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
  • Consolidated net revenues of $6.6 billion grew 9% over the prior year including a net benefit of approximately 1% from Streamline-driven activities and unfavorable foreign currency translation of nearly 1%
    • Streamline-driven activities include the consolidation of the acquired East China business, partially offset by licensing our CPG and foodservice businesses to Nestlé following the close of the deal on August 26, 2018 and the sale of the Tazo brand
  • GAAP operating margin, inclusive of restructuring and impairment charges, declined 310 basis points year-over-year to 15.3% primarily due to Streamline-driven activities and partner (employee) investments
    • Non-GAAP operating margin of 17.4% declined 180 basis points compared to the prior year
  • GAAP Earnings Per Share of $0.61, down 61% over the prior year
    • Non-GAAP EPS of $0.75, up 15% over the prior year, included a $0.07 benefit from discrete income tax items
  • The company returned $5.5 billion to shareholders through a combination of share repurchases and dividends
  • Starbucks RewardsTM loyalty program grew to 16.3 million active members in the U.S., up 14% year-over-year

Visit the Investor Relations page on to access the live audio webcast.