Starbucks claims that its U.S. sales have now fully recovered from the economic effects of the pandemic, reporting positive same-store sales growth of 9% for the second quarter ended March 28. It’s the first time Starbucks’ U.S. sales have trended positively since the pandemic began and represents a significant improvement over -5% same-store sales decline in the first quarter.
Starbucks CEO Kevin Johnson predicted last quarter that Starbucks would be fully recovered in the U.S. by the end of the second quarter.
The turnaround for Starbucks’ U.S. division was driven by a 21% increase in average ticket for U.S. sales, partially offset by traffic challenges.
Overseas, international same-store sales increased significantly by 35%, driven by traffic and ticket growth. Starbucks’ second-largest market, China, meanwhile saw an explosive 91% same-store sales growth last quarter driven again by traffic growth.
“I am very pleased with our progress to date in fiscal 2021, as our second quarter results demonstrated impressive momentum in the business with full sales recovery in the U.S.” Starbucks CEO Kevin Johnson said in a statement. “Our strong results validate our ability to adapt to changes in our environment and the needs of our customers.”
One of the largest drivers of transactional growth over the quarter was digital sales, Johnson said in Tuesday’s earnings call. Ticket frequency (people ordering more often) and the growing number of Starbucks rewards members (up by one million last quarter to a record 22.9 million members) contributed to the company’s momentum. 90-day active members of the Starbucks Rewards program have expanded by 18%.
“As we celebrate our 50th anniversary, we remain confident in our ability to execute our growth at scale agenda and unlock the full potential of the Starbucks brand,” Johnson said in a statement.
Starbucks reported revenue gains of 11.2% to $6.67 billion as compared with $5.6 billion the same quarter the year prior. The company reported net income of $659.4 million of 56 cents a share, up from $328.4 million or 28 cents a share the year earlier.
Starbucks opened five net new stores last quarter and now has 32,943 stores globally.
This is a developing story. Check back later for more details.
Contact Joanna at [email protected]
Find her on Twitter: @JoannaFantozzi
