Starbucks Corp. on Thursday reported a 5.9 percent increase in net revenue to 6.1 billion for its first quarter, ended December 31, 2017, driven by increased spending per transaction.
Net earnings were $2.3 billion or $1.57 per share, compared to 752 million or 51 cents per share a year ago.
Same-store sales were up by 2 percent both globally and in the Americas, driven by a 2 percent increase in the average ticket.
China outperformed other markets with comp store sales up by 6 percent, driving by a 6 percent increase in transactions.
Starbucks bought the remaining 50 percent of its joint venture in East China last July.
“Today, Starbucks has two powerful, independent but complementary engines driving our global growth, the U.S. and China,” president and CEO Kevin Johnson said in a release announcing the quarterly results. “Our work to streamline the company is sharpening our focus on our core operating priorities.”
It was the first time the Seattle-based chain exceeded $6 billion in revenue, the company said.
Membership in its loyalty program, Starbucks Rewards, in the United States grew by 11 percent to 14.2 million users, representing 37 percent of sales at company-operated locations. Eleven percent of sales at those locations came from mobile order and pay.
In the U.S. and Canada, 42 percent of all transactions were made using the Starbucks Card.
Globally, the company opened a net 700 locations, closing out the quarter with a total of 28,039 units in 76 markets.
“Starbucks delivered solid revenue and profit growth and our first-ever $6 billion revenue in Q1,” chief financial officer Scot Maw said. “We are laser-focused on accelerating growth in China and driving improvement across the U.S. business as we move into and through the back half of the year, and remain committed to delivering on the long-term targets we announced last quarter.”
The earnings report comes a day after Starbucks announced it would give pay increases and add new sick-time benefits to its employees in response to updates in U.S. tax law.
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