Shares of Starbucks, the Seattle sugar-drink and coffee dispensary, initially spiked lower by -4% after the company reported earnings.  Since then trade has been volatile but investors are recuperating some of their losses.

Their earnings report was decent and inline with expectations.  Here are some highlights:

The company announced Shanghai, China as the location of its first  
international Starbucks Reserve Roastery and Tasting Room. Scheduled to open in  
late 2017, the 30,000 square-foot space will reflect a similar, immersive  
all-sensory experience as the company's first location, which debuted in its  
hometown of Seattle, Washington in 2014.

They’re opening a jumbo-roaster in China in hopes of having it knocked off my local Chinese merchants.

In May, Starbucks announced that it had closed an underwritten public  
offering of senior notes, including the first U.S. Corporate Sustainability  
Bond. The company will use the net proceeds from the offering of $500 million  
in 2.450% Senior Notes due 2026 to enhance its sustainability programs around  
coffee supply chain management through Eligible Sustainability Projects.

They sold some expensive looking debt.  Over in Japan they loan out millions for as little as 0.001% so they could have done better.

Net revenues for the China/Asia Pacific segment grew 18% over Q3 FY15 to  
$768.2 million in Q3 FY16. The increase was primarily driven by incremental  
revenues from 888 net new store openings over the past 12 months.

See Also: $SBUX Disappoints, Shares Fall in The After Hours

Incremental revenues, you say?  Are the existing China stores growing?  No word but wow, going all in on China and opening 209 new stores, yikes.

Q3 EPS $0.49 vs. Est. $0.49, Rev. $5.2B vs. Est. $5.3B

Q4 Adj. EPS $0.54-$0.55 vs $0.55 Est.

So inline on Q3 and in-line with guidance.  Boring normally, but when you’re priced for perfection, troublesome.

The earnings call is scheduled for 5pm EST.

 

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