(By Balaseshan) Starbucks Corp. (NASDAQ: SBUX) reported a 13.1 percent increase in quarterly earnings on strong traffic growth, and continued momentum in Channel Development. Earnings came in line with consensus and the specialty coffee maker reaffirmed its fiscal 2013 forecast.
Earnings were $432.2 million or $0.57 per share for the first quarter, compared to $382.1 million or $0.50 per share last year.
Revenue grew 10.6 percent to $3.80 billion. Global comparable store sales increased 6 percent, driven by a 4 percent increase in traffic and a 2 percent rise in the average ticket.
Analysts, on average, polled by Thomson Reuters had expected a profit of $0.57 per share on revenue of $3.84 billion for the first quarter.
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Revenue from company-operated stores increased 9.4 percent to $2.99 billion, while revenue from licensed stores grew 14.2 percent to $350.2 million. CPG, food service and other revenue jumped 15.7 percent to $459.8 million.
Revenue for the Americas segment increased 10.2 percent, while revenue for the EMEA segment rose 1 percent. Revenue for the China/Asia Pacific segment jumped 28.3 percent.
Channel development revenue grew 13.1 percent to $379.8 million, primarily driven by sales of Starbucks- and Tazo-branded K-Cup packs as well as incremental sales related to the launch of the Verismo system.
Looking ahead into the fiscal 2013, the company reaffirmed its EPS guidance of $2.06 to $2.15 and revenue growth outlook of 10 percent to 13 percent. Street analysts predict EPS of $2.16 on revenue growth of 12.70 percent.
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The company said the revenue outlook is driven by mid-single-digit comparable store sales growth, about 1,300 net new store openings, and continued strong growth in the channel development business.
"Starbucks strong Q1 performance reaffirms our confidence in the aggressive 2013 growth targets we announced in early November. The quality and diversity of growth drivers in the business, combined with our continued focus on operational excellence, gives us confidence in sustainable, strong profitable growth," said Troy Alstead, chief financial officer of Starbucks.
The board declared a cash dividend of $0.21, payable on February 22 to shareholders of record as of February 7.
SBUX closed Thursday's regular session up 0.20 percent at $54.57. The stock has been trading between $43.04 and $62.00 for the past 52 weeks.