Research Desk Line-up: Papa John's Intl. Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 9, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Starbucks Corp. (NASDAQ: SBUX), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=SBUX, following the Company's announcement of its financial results on July 27, 2017, for the third quarter fiscal 2017. Starbucks' global comparable sales growth was 4%. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Specialty Eateries industry. Pro-TD has currently selected Papa John's International, Inc. (NASDAQ: PZZA) for due-diligence and potential coverage as the Company announced on August 01, 2017, its financial results for Q2 2017 which ended on June 25, 2017. Register for a free membership today, and be among the early birds that get access to our report on Papa John's Intl. when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on SBUX; also brushing on PZZA. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=SBUX

http://protraderdaily.com/optin/?symbol=PZZA

Earnings Reviewed

For three months ended July 02, 2017, Starbucks' revenue increased 8% on a y-o-y basis to $5.66 billion from $5.24 billion in Q3 FY16. The increase was primarily due to incremental revenues from the opening of new stores in the past 12 months and growth in global comparable store sales. The revenue came in below analysts' expectations of $5.74 billion.

For the reported quarter, Starbucks' global comparable store sales increased 4% compared to 3% increase in Q2 FY17. During Q3 FY17, the Company's Rewards membership increased 8% on a y-o-y basis to 13.3 million active customers. For the reported quarter, Starbucks added 575 net new stores compared to 474 in Q3 FY16.

During Q3 FY17, Starbucks' operating income increased 2.1% to $1.04 billion from $1.02 billion in the same quarter last year. For the reported quarter, the Company's operating margin decreased 110 basis points to 18.4% of revenue from 19.5% of revenue in Q3 FY16. The decrease was mainly due to goodwill and store asset impairments. During Q3 FY17, Starbucks' adjusted operating margin increased 100 basis points to 20.8% of revenue from 19.8% of revenue in Q3 FY16.

For the reported quarter, Starbucks' net income decreased 8.3% to $691.6 million on a y-o-y basis from $754.1 million in Q3 FY16. During Q3 FY17, the Company's EPS decreased 8% to $0.47 on a y-o-y basis from $0.51 in Q3 FY16. During Q3 FY17, Starbucks' adjusted EPS increased 12.2% to $0.55 on a y-o-y basis from $0.49 in Q3 FY16. The adjusted EPS was in-line with the analysts' expectations.

On July 17, 2017, Starbucks' Board of Directors declared a cash dividend of $0.25 per share, payable on August 25, 2017, to shareholders of record as of August 10, 2017.

Starbucks' Segment Details

America - During Q3 FY17, America segment's revenue increased 10% to $3.99 billion from $3.65 billion in Q3 FY16. During Q3 FY17, America's comparable store sales growth was 5% compared to 4% in Q3 FY16. For the reported quarter, the segment's operating income increased 8% to $974.8 million from $898.5 million in Q3 FY16. During Q3 FY17, the segment's operating margin decreased 20 basis points to 24.4% of revenue from 24.6% of revenue in Q3 FY16. The decrease was due to higher investments in employees and the impact of product sales mix and higher commodity costs.

China/Asia Pacific (CAP) - During Q3 FY17, CAP segment's revenue increased 9% to $840.6 million from $768.2 million in Q3 FY16. During Q3 FY17, CAP's comparable store sales growth was 1%. For the reported quarter, the segment's operating income increased 22% to $223.8 million from $182.2 million in Q3 FY16. During Q3 FY17, the segment's operating margin increased 280 basis points to 26.6% of revenue from 23.8% of revenue in Q3 FY16. The increase was due to the transition to China's value added tax structure in Q3 FY16.

Europe, Middle-East, and Africa (EMEA) - During Q3 FY17, EMEA segment's revenue decreased 9% to $249.9 million from $273.4 million in Q3 FY16. During Q3 FY17, CAP's comparable store sales growth was 2%. For the reported quarter, the segment's operating income decreased 67% to $9.8 million from $29.9 million in Q3 FY16. During Q3 FY17, the segment's operating margin decreased 700 basis points to 3.9% of revenue from 10.9% of revenue in Q3 FY16. The decrease was due to partial impairment of goodwill for Switzerland market.

Channel Development - During Q3 FY17, Channel Development segments' revenue increased 9% to $478.7 million from $440.8 million in Q3 FY16. For the reported quarter, the segment's operating income increased 12% to $210.2 million from $187.8 million in Q3 FY16. During Q3 FY17, the segment's operating margin increased 130 basis points to 43.9% of revenue from 42.6% of revenue in Q3 FY16. The decrease was due to lower coffee costs and higher income from the North American coffee partnership.

Outlook

For Q4 FY17, Starbucks is expecting revenue growth to be in the range of 8%-10% and estimates global comparable growth to be between 3%-4%. The Company expects EPS to be in the range of $0.53-$0.54 and adjusted EPS to be in the range of $0.54-$0.55.

For fiscal 2017, Starbucks estimates EPS to be in the range of $1.96-$1.97 and adjusted EPS to be in the range of $2.05-$2.06.

Stock Performance

Starbucks' share price finished yesterday's trading session at $54.52, declining 2.00%. A total volume of 11.08 million shares have exchanged hands, which was higher than the 3-month average volume of 8.96 million shares. Shares of the Company have a PE ratio of 27.63 and have a dividend yield of 1.83%. The stock currently has a market cap of $79.06 billion.

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