Starbucks Continues to Deliver Impressive Results in 3Q15



Impressive performance

Starbucks (SBUX) released a stellar 3Q15 earnings report on July 23, 2015, after the market closed. Its earnings per share came in at $0.42, which beat Wall Street analysts’ consensus estimate of $0.41. Shares were up 4.14% to $58.90 in the after-hours trading session. Year-to-date, Starbucks has returned 38% to its investors. The broader consumer discretionary portfolio Consumer Discretionary Select Sector SPDR Fund (XLY) has returned 8.85%, and the S&P 500 has returned just 1.05%.

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In this series

We’ll update you on the key financial highlights that Starbucks announced during the quarter and we’ll take a look at what’s driving the company’s revenue growth. We’ll also discuss how the company is progressing in its Americas, China/Asia Pacific, and other segments. Finally, we’ll touch upon the key innovations that the company announced and what helped Starbucks record a stellar performance in the third quarter.

Starbucks leads the coffee market, leaving behind Dunkin’ Brands (DNKN), Krispy Kreme (KKD), McDonald’s (MCD), and other players that operate coffee concepts. Currently Starbucks forms 3% of the Consumer Discretionary Select Sector SPDR FUND (XLY) and Darden (DRI) forms 0.3% .

Company overview

Starbucks (SBUX) operates limited-service cafés. The company operates more than 22,000 restaurants across 67 countries around the world. It employs more than 300,000 people.

Starbucks is mainly known for retailing and marketing coffee and related products. Its menu includes specialty coffee, handcrafted coffee, Frappuccinos, pumpkin spice lattes, and a variety of coffee beverages and products. Starbucks also offers tea and breakfast items.

Starbucks operates brands such as Starbucks, Teavana, Seattle’s Best Coffee, Evolution Fresh, and Ethos. In June 2015, Starbucks announced the closure of its 23 La Boulange shops in favor of serving La Boulange food at Starbucks locations.

In 2013, Starbucks acquired Teavana for $620 million. Teavana primarily offers tea-based beverages. Teavana products are also available in Starbucks stores. Plus, the Evolution Fresh brand offers a variety of bottled juices.


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