Improvements in U.S. and China markets bolster the coffee brand’s performance
Starbucks growth remains strong as the coffee brand posted positive traffic growth in the quarter ended June 30, 2019. After several quarters of struggling to improve transactions, Starbucks posted 3% global growth in traffic, with a 2% increase in traffic in China and 3% improvement in traffic for the U.S. segment.
Related: Starbucks traffic continues to flounder in China
Same-store sales for Starbucks increased 6%, while U.S. same-store sales saw growth of 7% and China same-store sales also went up 6%. Global same-store sales growth was equally driven by an increase in average ticket and average transactions.
“Our two targeted long-term growth markets, the U.S. and China, performed extremely well across a number of measures as a result of our focus on enhancing the customer experience, driving new beverage innovation and accelerating the expansion of our digital customer relationships,” Starbucks CEO and president Kevin Johnson said in a statement. “Given the strong momentum across our business, we are raising our full-year financial outlook.”
Related: Starbucks opens first express store format in China
Johnson contributed the significant growth during the quarter to the brand’s accelerated growth in China and the U.S. and expanding the brand’s reach through the Global Coffee Alliance with Nestlé in a $7 billion deal first announced in August 2018.
Revenue for the third quarter increased 8.1% to $6.82 billion, up from $6.31 billion a year earlier. Net income increased 61% to $1.37 billion or $1.12 per share, up from $852.5 million or 61 cents per share a year earlier.
Starbucks opened a net 442 units in the third quarter and as of June 30, had 30,626 stores globally.
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