Starbucks posts record revenue after opening hundreds of new stores
The coffee giant opened 816 net new stores in the quarter.
Starbucks has reported record revenue in its fourth quarter as it improved sales and efficiency at its existing stores and opened hundreds of new ones.
Revenue for the July-September period rose 11% to 9.4 billion US dollars (£7.7 billion). That surpassed Wall Street’s expectation of 9.3 billion dollars (£7.6 billion), according to analysts polled by FactSet.
The Seattle coffee giant opened 816 net new stores in the quarter, ending its fiscal year with more than 38,000 stores worldwide.
But the company said an ongoing revamp of its existing North American stores is also improving sales and making operations more efficient.
The company announced the 450 million dollar (£370 million) revamp last autumn. It includes new work stations that cut the time and effort it takes to make iced drinks, which now make up 75% of US sales. The company is also installing new ovens and warmers for hot food.
Global same-store sales – or sales at stores open at least a year – rose 8%, also surpassing analyst forecasts for a 6.8% increase.
US same-store sales rose 8%, while same-store sales in China – the company’s second-largest market – rose 2%.
Net income jumped 39% to 1.2 billion dollars (£984 million), higher than Wall Street expectations.
Shares rose more than 6% in pre-market trading on Thursday.
