Starbucks Corporation (NASDAQ:SBUX) will post second quarter 2014 earnings on April 24th. The company is in a better position when compared to its peers. Sales momentum will drive ahead with the company, which is making efforts to penetrate newer markets and expanding its network.
Rise in sales expected
Wall Street Analysts are expecting 11% year over year revenue growth in the second quarter to $3.95 billion. Starbucks Corporation (NASDAQ:SBUX) provided full year EPS guidance during the first quarter earnings announcement, which was between $2.59 and $2.67 per share with around 54 cents in the second quarter.
Factors like a growing number of customers, the launch of Starbucks Corporation (NASDAQ:SBUX)’s cards and My Starbucks Rewards loyalty program in the region added significantly to the sales growth last quarter. Also, the company is planning to open around 750 new outlets this year. Analysts are expecting the company to clock in high sales during the second quarter of 2014.
Robust Q1 numbers for Starbucks
In the previous quarter, global comparable sales surged 5% on the back of holiday sales and store traffic. The first quarter marked the first time when all regions reported a 5% increase in the comparable sales. In the first quarter, revenue came in at $4.2 billion, an increase of 12% year on year. Also, Starbucks Corporation (NASDAQ:SBUX) has bought a stake in the Green Coffee Beans and expects an addition of $110 million to $120 million in the profits this year with coffee prices moving up.
Growth in the Europe, Middle East and Africa region surged 11% in revenue and 5% increase in the comparable sales last quarter. Sales were high partly due to strong double digit comparable sales in the Middle East and Africa. Also, the rise of 38% year over year licensed store revenue was a major contributor in the growth. Due to increase in the revenue and number of licensed stores, there was an increase of 50% in the operating income. Mobile payment app by Starbucks Corporation (NASDAQ:SBUX) has become very popular with an average of 5 million mobile transactions in its stores every week, in the first quarter.
In China and Asia Pacific, comparable sales rose 8% in the earlier quarter. There are over 4,000 outlets of Starbucks Corporation (NASDAQ:SBUX) in 14 countries, including 209 newly opened in the first quarter of 2014. Quarterly revenue growth for the company has been 25%.