Starbucks Reports Strong Store Traffic and Rise in Quarterly Sales
The New York Times • • business
Key Points:
- Starbucks reported strong quarterly earnings with global same-store sales up 6.2%, driven by high customer traffic and a 7.1% increase in U.S. sales, despite concerns over the war with Iran and rising gas prices.
- CEO Brian Niccol attributed the improved performance to an operational turnaround addressing customer complaints such as long wait times and seating shortages since his late 2024 appointment.
- Revenues rose 9% to $9.5 billion, and net earnings increased 33% to $510.8 million, with the company’s stock rising 5.4% in after-hours trading.
- Starbucks saw increased customer visits across all income levels, emphasizing the importance of providing value and a rewarding experience, especially for lower-income consumers viewing purchases as an indulgence.
- While raising its full-year outlook for same-store sales growth to 5%, Starbucks remains cautious due to uncertainties from geopolitical tensions and rising fuel costs, though it expects coffee prices and tariffs to ease in the latter half of the year.
