Starbucks brews up a strong Q2

4/27/2018
Another strong performance by Starbucks’ China region helped bolster revenue and beat analyst expectations for the second quarter.

For the quarter ended April 1, Starbucks’ revenue jumped 14% to $6.03 billion, beating analyst estimates of $5.9 billion. Earnings per share were $0.53, up 18% over the prior year.

These increase was fueled by the consolidation of the company’s recently acquired East China business, as well as the closure of its Teavana brand, the Tazo tea brand, and the conversion of certain international retail operations from company-owned to licensed models.

Global comparable-store sales increased 2%, beating 1.8% growth expected by analysts. This jump was driven by a 3% increase in average ticket. Americas and U.S. comp-store sales increased 2%, while China’s comp-store sales increased 4%.

The Starbucks Rewards loyalty program added 1.6 million active members in the U.S., up 12% over the prior year. Loyalty member spend increased to 39% of U.S. company-operated sales. Mobile Order and Pay represented 12% of U.S. company-operated transactions.

“The second quarter of fiscal 2018 represented another quarter of record financial results, highlighted by accelerating momentum across our Americas business — particularly in the U.S., continued strong performance in China, and our strongest comp growth in Japan in five quarters,” said Kevin Johnson, president and CEO.
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