Same-store sales grew 7 percent in the United States and 6 percent globally. This included 11 percent comparable growth in China/Asia Pacific, which are arguably regions with the greatest growth opportunities. Starbucks opened 125 stores in China/Asia Pacific in the quarter, four more than last year.
Same-region revenues grew 28 percent, while earnings were close behind at a 26 percent growth. Margins moved up 60 basis points to 33.7 percent, by far the highest in any of its segments.
Starbucks is also advancing its K-Cup business. Revenues were up 13 percent for the segment, while operating income climbed 24 percent on the back of a 230 basis-point increase in margins. This is sure to present a challenge for Green Mountain Coffee Roasters (NASDAQ:GMCR), which closed the day up 6.5 percent as David Einhorn acknowledged that his short position had backfired.
Dunkin’ Brands (NASDAQ:DNKN) will report its earnings before the markets open next Thursday. The stock has been on a tear recently, and analysts are looking for $0.33 per share from the company. Dunkin has historically come in ahead of expectations.
Don’t Miss: Can Starbucks Find Room to Grow?