Starbucks Delivers Perfectly For The QuarterSBUX) reached a perfect quarter on Friday, with its price target raised to $64 from $60, maintaining an “outperfom” rating of the stock by RBC Capital. With a great CEO on board and promise of innovation and technology in future success, Starbucks is a company that is difficult not to like by investors.
The Seattle based coffee giant reported its 2015 third quarter financial results on Thursday. Earnings were reported of 41 cents per share on revenue of $4.88 billion.
Starbucks third quarter company growth is impressive. With a market capitalization of $86 billion, everything about the company these days is quite attractive. Starbucks innovative growth and branding efforts through use of its loyalty and mobile apps have significantly boosted its customer traffic. Starbucks announced on Tuesday that it will expand its mobile ordering to an additional 17 states following its initial 2014 launch.
“Starbucks Q3 fiscal 2015 stands as among the strongest and most remarkable quarters in our over 23 years as a public company,” said Howard Schultz, chairman and ceo. “The 4% increase in global transactions we reported equates to our having served an additional 23 million customer occasions in Q3 of this year over last year, clearly evidencing a continuation of the strong momentum we have seen across our business and around the world this fiscal year,” Schultz added.
The company added new breakfast items, and improved its operations through training procedures to further its revenue growth. Despite the decline in customer traffic due to technology and beverage innovation, Starbucks has managed to increase traffic through these areas through its recent efforts, proving skeptics wrong.
Starbucks announcement on Thursday that it is giving its board permission to buy back 50 million more shares of stock. There is no expiration date with the authorization. It is also an in addition to 11 million shares remaining on its current allowance.
Starbucks also recently announced its latest collaboration with PepsiCo (PEP). The partnership will allow Starbucks to sell, market and distribute ready-to-drink (RTD) Starbucks coffee and energy beverages. The expansive distribution is set to begin in 2016 in Latin America. Starbucks has operated in Latin America since 2002. The company has over 870 stores in 14 markets.
Published on Jul 27, 2015By Jennifer Lynn