Food helps drive strong Q2 for Starbucks; 1,650 net new stores planned

Seattle – Net earnings rose 16% to $494.9 million in the second quarter of fiscal 2015 from $427 million a year earlier at Starbucks Corp. Cost of sales grew at a slower pace than extremely strong revenue growth, which helped boost profits.



Starbucks plans to open 1,650 net new stores globally during fiscal 2015. This includes 600 new stores in the Americas, half licensed; 200 new stores in Europe/Middle East/Africa, primarily licensed; and 850 new stores in China/Asia-Pacific, primarily licensed.



Net revenues totaled $4.56 billion, up 18% from $3.87 billion. Same-store sales rose 7%. Incremental revenues from acquiring Starbucks Japan and the opening of 1,511 new stores helped boost revenues, along with a record $1.1 billion in Starbucks card loads driven by 1.3 million new My Starbucks Rewards members, helped increase net revenues.



In addition, Starbucks credited a 16% overall increase in U.S. food sales, and 35% increase in breakfast sandwich sales in the U.S., for boosting revenues. U.S. customer visits rose 2%, or an additional 10 million visits, during the quarter. One-third of U.S. orders included a food item. Starbucks has been trying to drive more traffic in the afternoons and evenings with food offerings. A pilot of selling alcoholic beverages in the evening at about 30 stores in the U.S. is expected to expand during fiscal 2015.



For fiscal 2015, Starbucks reaffirmed targets of full-year revenue growth of 16% -18% and global same-store sales growth of mid-single digits.