The premium coffee house chain posted strong quarterly results after Thursday's market close.
Revenue climbed 11% to $3.36 billion, fueled by a 6% increase in global comps. Things held up even better closer to home, as same-store sales rose 7% in the Americas region. Earnings climbed 24% to $0.46 a share over the adjusted profit of $0.37 a share it scored a year earlier.
Analysts were holding out for a bit more in revenue but slightly less on the bottom line.
Starbucks is ramping up its expansion efforts, with a target of 1,300 net new stores worldwide in fiscal 2013. It's not the only thing on the rise. Starbucks now expects to earn between $2.06 a share and $2.15 a share for the new fiscal year that began last month, just ahead of its earlier outlook.
Just a couple of years ago, Starbucks was retreating, closing down stores as the recession took its toll. The economy may not be all the way back, but consumers clearly want to sit things through with a nice warm cup of Starbucks coffee in their hands.
Other Things Worth Watching
• Priceline.com (PCLN) is also taking off. The "name your own price" travel portal also posted better than expected quarterly results after Thursday's market close. Revenue climbed 17% to $1.71 billion, fueled by a 31% surge in international revenue that would have been strong without currency fluctuations. Priceline's adjusted net income grew even faster, soaring 25% to hit $12.40 a share. The pros were parked at the wrong gate, holding out for $11.81 on the bottom line.
• LinkedIn (LNKD) also came through with strong results. The corporate-climbing social networking website operator posted an adjusted profit of $0.22 a share. Wall Street was only expecting the dot-com darling to earn half as much. Revenue of $252 million also coasted past the $244.6 billion that analysts were budgeting. I guess you can say that LinkedIn nailed this job interview. Yes, the shares themselves may be overvalued, but apparently the company itself is overqualified.
Motley Fool contributor Rick Munarriz does not own shares in any of the stocks in this article. The Motley Fool owns shares of Linkedin. The Motley Fool owns shares of and has written puts on Starbucks. Motley Fool newsletter services have recommended buying shares of Starbucks, Priceline.com, and Linkedin. Motley Fool newsletter services have recommended writing covered calls on Starbucks.