The new stores will have reduced beverage and food menus and will integrate the company's digital payment and mobile ordering systems to speed up service, the company said.
The coffeehouse chain is looking to capitalize on the strength of its drive-through stores, which make up about 40% of its U.S. company-operated stores and have higher sales growth than stores without drive-through service, the company said.
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- The revenue growth came in higher than the industry average of 5.5%. Since the same quarter one year prior, revenues rose by 11.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 22.7% when compared to the same quarter one year prior, going from $417.80 million to $512.70 million.
- Net operating cash flow has increased to $850.10 million or 27.77% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -5.13%.
- The current debt-to-equity ratio, 0.40, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that SBUX's debt-to-equity ratio is low, the quick ratio, which is currently 0.62, displays a potential problem in covering short-term cash needs.
- STARBUCKS CORP has improved earnings per share by 21.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, STARBUCKS CORP swung to a loss, reporting -$0.01 versus $1.79 in the prior year. This year, the market expects an improvement in earnings ($2.67 versus -$0.01).
- You can view the full analysis from the report here: SBUX Ratings Report
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