SEATTLE: Starbucks reported record revenue in its fourth quarter as it improved sales and efficiency at its existing stores and opened hundreds of new ones. Revenue for the July-September period rose 11 per cent to $9.4 billion. That surpassed Wall Street’s expectation of $9.3 billion, according to analysts polled by FactSet.
The Seattle coffee giant opened 816 net new stores in the quarter, ending its fiscal year with more than 38,000 stores worldwide.
But the company said an ongoing revamp of its existing North American stores is also improving sales and making operations more efficient.
The company announced the $450 million revamp last fall. It includes new work stations that cut the time and effort it takes to make iced drinks, which now make up 75 per cent of US sales. The company is also installing new ovens and warmers for hot food.
Global same-store sales – or sales at stores open at least a year — rose 8 per cent, also surpassing analyst forecasts for a 6.8 per cent increase.
US same-store sales rose 8 per cent; store traffic was up 2 per cent and consumers spent more per visit on things like food and customised drinks.
Same-store sales in China – the company’s second-largest market – rose 2 per cent. Starbucks said store traffic in China rose 4 per cent but consumers spent less per visit.
Net income jumped 39 per cent to $1.2 billion, or $1.06 per share. That was also higher than Wall Street expectations for 97 cents.
Starbucks shares rose more than 6 per cent in premarket trading Thursday.
The Seattle coffee giant opened 816 net new stores in the quarter, ending its fiscal year with more than 38,000 stores worldwide.
But the company said an ongoing revamp of its existing North American stores is also improving sales and making operations more efficient.
The company announced the $450 million revamp last fall. It includes new work stations that cut the time and effort it takes to make iced drinks, which now make up 75 per cent of US sales. The company is also installing new ovens and warmers for hot food.
Global same-store sales – or sales at stores open at least a year — rose 8 per cent, also surpassing analyst forecasts for a 6.8 per cent increase.
US same-store sales rose 8 per cent; store traffic was up 2 per cent and consumers spent more per visit on things like food and customised drinks.
Same-store sales in China – the company’s second-largest market – rose 2 per cent. Starbucks said store traffic in China rose 4 per cent but consumers spent less per visit.
Net income jumped 39 per cent to $1.2 billion, or $1.06 per share. That was also higher than Wall Street expectations for 97 cents.
Starbucks shares rose more than 6 per cent in premarket trading Thursday.
