Starbucks (SBUX) posted its first-quarter earnings of fiscal 2019 after the market closed on January 24. Before looking at analysts’ reactions, we’ll look at Starbucks’s first-quarter performance and its stock movement.
During the quarter, Starbucks posted adjusted EPS of $0.68 on revenues of $6.63 billion, outperforming analysts’ EPS expectation of $0.65 and revenue expectations of $6.49 billion. The company also beat analysts’ global SSSG (same-store sales growth) expectation with both the Americas segment and the China/Asia-Pacific segment posting strong SSSG. The better-than-expected first-quarter performance appears to have increased investors’ confidence, leading to a rise in the company’s stock price. Starbucks closed January 25 at $67.09, which represents a rise of 3.6% from its previous day’s closing price.
For a detailed analysis of Starbucks’s first-quarter earnings, you can read Starbucks Stock Rose Due to Strong First-Quarter Earnings.
Last year, Starbucks outperformed the broader equity market with a rise of 12.1%, while the S&P 500 Index fell by 6.2%. The company has also started 2019 on a brighter note with its stock price rising by 4.2% YTD. In comparison, peers Dunkin’ Brands (DNKN) and McDonald’s (MCD) have returned 8.1% and 3.6%, respectively. Also, the Consumer Discretionary Select Sector SPDR ETF (XLY), which invests ~8.4% of its holdings in restaurant and travel companies, has returned 8.1% YTD.
Next, we’ll look at analysts’ recommendations after Starbucks’s first-quarter earnings of fiscal 2019.