Starbucks Beats 1Q16 Expectations, Still Down Year-to-Date

Starbucks (SBUX) reported earnings per share of $0.46 for 1Q16, which exceeded Wall Street’s consensus estimates as well as management’s guidance of $0.45 per share. The stock closed slightly higher at $59.20 on January 22, a day after the earnings release. Year-to-date, Starbucks is still 1.4% down. A comparable benchmark, the Consumer Discretionary Select Sector SPDR (XLY), is down 6.2%.

The $0.46 earnings per share in 1Q16 rose 15% from $0.40 per share in 1Q15. This growth stems from Starbucks continuing to do well in some of its key markets. We’ll discuss this performance in more detail later in this series.

You can invest in Starbucks through the Consumer Discretionary Select Sector SPDR ETF (XLY). XLY invests about 4% of its portfolio in Starbucks. It also has holdings in other restaurants, such as McDonald’s (MCD), Yum! Brands (YUM), and Chipotle Mexican Grill (CMG).

In this earnings and conference notes series, you’ll see how the company’s revenue performed in its most recent quarter, 1Q16, against the corresponding quarter last year. You’ll also get an overview of how the company’s same-store sales performed and a breakdown of the trends that contributed to same-store sales growth. We’ll look at other financial performance as well as the company’s outlook as it steps in to the remaining three quarters of fiscal 2016. We’ll wrap up this series by looking at analysts’ estimates and revisions following last week’s earnings release.