Starbucks Corp Earnings Cheat Sheet: Profits Grow by Double Digits For Fifth Straight Quarter

S&P 500 (NYSE:SPY) component Starbucks Corporation (NASDAQ:SBUX) reported its results for the fourth quarter. Starbucks purchases, roasts and sells whole bean coffees, along with brewed coffees, Italian-style espresso beverages, cold blended beverages and a selection of accessories.

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Starbucks Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for the specialty eatery rose to $358.5 million (47 cents per share) vs. $278.9 million (37 cents per share) in the same quarter a year earlier. This marks a rise of 28.5% from the year earlier quarter.

Revenue: Rose 6.8% to $3.03 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: SBUX reported adjusted net income of 37 cents per share. By that measure, the company beat the mean estimate of 36 cents per share. It beat the average revenue estimate of $2.95 billion.

Quoting Management: “Fiscal 2011 was an extraordinary year in which Starbucks reported record earnings every quarter, and for the full year, and very strong comp store sales growth all around the world,” said Howard Schultz, chairman, president and ceo. “Starbucks today is executing in all markets and across all channels, and we have never been better positioned to go hard and go fast after the tremendous opportunity that lies ahead in 2012 and beyond,” Schultz added.

Key Stats:

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 34.2% and in the second quarter, the figure rose 20.4%.

Gross margin shrank 2.3 percentage points to 56.4%. The contraction appeared to be driven by increased costs, which rose 12.8% from the year earlier quarter while revenue rose 6.8%.

Revenue has risen the past four quarters. Revenue increased 12.3% to $2.93 billion in the third quarter. The figure rose 9.9% in the second quarter from the year earlier and climbed 8.4% in the first quarter from the year-ago quarter.

The company has now beaten estimates the last two quarters. In the third quarter, it topped expectations with net income of 36 cents versus a mean estimate of net income of 34 cents per share.

Looking Forward: Over the last 30 days, analysts have not been optimistic about the company’s next quarter performance. The average estimate for the first quarter of the next fiscal year is now 50 cents per share, down from 51 cents. For the fiscal year, the average estimate has been unchanged at $1.52 a share.

Competitors to Watch: Einstein Noah Restaurant Group, Inc. (NASDAQ:BAGL), Panera Bread Company (NASDAQ:PNRA), Caribou Coffee Co., Inc. (NASDAQ:CBOU), Peet’s Coffee & Tea, Inc. (NASDAQ:PEET), McDonald’s Corporation (NYSE:MCD), Yum! Brands, Inc. (NYSE:YUM), Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR), Tim Hortons Inc. (NYSE:THI), Wendy’s Arby’s Group Inc. (NYSE:WEN), Sonic Corporation (NASDAQ:SONC) and Darden Restaurants (NYSE:DRI).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)