Starbucks shares rocket on record Q2

Bruce Horovitz | USA TODAY

Like a late-day caffeine burst, Starbucks shares rocketed after the bell Thursday when the company posted record second quarter revenues and solid comp store sales.

Shares were up nearly 5% for the java giant which saw global and domestic same-store sales jump 7% for the second fiscal quarter. Net revenues jumped 18% to a second quarter record of $4.6 billion.

For Starbucks, which has been a news magnet in recent months, the results are like the foam on the cappuccino. Earlier this month, the company announced it was doubling its employee online college tuition funding program to four years. Last month, Starbucks generated social media howls for it's efforts to help improve race relations nationally with its "Race Together" program.

Meanwhile, Thursday's results were impressive. The chain reported earnings per share of 33 cents -- up 18% from the same period a year ago. That matched the FactSet consensus. Revenues were up 18% to $4.56 billion -- which beat the FactSet consensus. The same-store sales figure of 7% also beat the 5.1% consensus.

In a conference call, CEO Howard Schultz called the 2nd fiscal quarter "a stunning quarter for Starbucks on almost every level."

Analysts say the growth can continue.

"Starbucks remains one of a shrinking group of consumer large cap growth stories," said David Palmer, consumer Analyst at RBC Capital Markets, in a note to investors.

Year-over-year comp store transactions increased over 10 million in the U.S. and over 14 million globally, the company said.

The company opened 210 net new stores in the second quarter, bringing the total to 22,088.

Schultz confirmed that the Mobile Order & Pay program will expand nationally this calendar year. Based on the early roll-out in the 600-plus stores in the Pacific Northwest, he said, "This is going to be a much more seamless integration than we anticipated."