FILE - This June 26, 2019 file photo shows a Starbucks sign outside a Starbucks coffee shop in downtown Pittsburgh. Starbucks Corp. reports financial earns on Wednesday, Oct. 30. (AP Photo/Gene J. Puskar, File)

Starbucks ends fiscal year on a high note

October 30, 2019 - 3:56 pm

Starbucks Corp. ended its fiscal year on a high note as new drinks and more efficient stores drew in U.S. customers.

Starbucks said same-store sales in the Americas region — or sales at stores open at least 13 months — rose 6% during the July-September period. Half that increase came from consumers spending more, but the other half came from increased traffic. Last year, traffic was down in the region.

New drinks like nitro cold brew coffee, which is coming to all U.S. Starbucks stores by the end of this year, helped drive traffic. Starbucks has also said a multi-year effort to streamline stores and remove unnecessary administrative tasks is paying off.

The Seattle-based coffee giant said Wednesday its net income rose 6% to $802.9 million in its fiscal fourth quarter.

Earnings, adjusted for non-recurring items like restructuring costs, were 70 cents per share. That met Wall Street's forecast, according to analysts polled by FactSet.

Revenue rose 7% to $6.75 billion. That topped Wall Street's forecast of $6.69 billion.

Globally, same-store sales were up 5%, beating analysts' forecast of 4% growth. Starbucks said same-store sales in China rose 5%.

Starbucks shares rose 2.5% to $86.30 in after-hours trading.

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