NEW YORK (Reuters) – Starbucks Corp beat Wall Street sales and revenue estimates on Wednesday, driven by new stores, digital ordering and delivery in China, and cold drinks in the United States.
Total net revenue for the world’s largest coffee chain rose 7% to $6.75 billion, higher than the average analyst estimate of $6.68 billion.
Starbucks - Shares - % - Trading - Company
Starbucks shares rose nearly 3% in extended trading after the Seattle-based company also forecast 2020 comparable restaurant sales largely above estimates. Its fiscal year ended Sept. 29.
A year ago, Starbucks announced an organizational restructuring with corporate job cuts and leadership changes, partly to revitalize stagnant sales. Changes have included more focus on digital sales and new beverages.
Starbucks - Competition - Niche - Coffee - Shops
Starbucks has been fending off competition from niche independent coffee shops in the United States, as well as startups such as Luckin Coffee in China.
To boost sales, Starbucks continued to expand its “Rewards” loyalty program, including access to Happy Hours events.
China - Program - Members - Company - Quarter
In China, the program had 10 million active members in the company’s fourth quarter, up 45% over the prior year. U.S. membership jumped 15% to 17.6 million.
Chinese consumers are “much more digitally savvy than any other market in the world,” Chief Executive Kevin Johnson said.
Percent - Sales
Ten percent of sales...
Wake Up To Breaking News!
Measuring his life out one teaspoon at a time.