Starbucks posts first US sales growth in two years
Starbucks posted its first quarter of same-store sales growth in the United States and North America in two years on Wednesday, signaling early progress in its turnaround efforts under CEO Brian Niccol.
For its fiscal first quarter ended December 28, Starbucks reported U.S. and North America same-store sales growth of 4%, exceeding market expectations for a 2% increase, News.Az reports, citing foreign media.
The gain was driven by a 3% rise in customer transactions and a 1% increase in the average ticket size.
The company last reported positive same-store sales growth in its U.S. and North America segment in the first quarter of fiscal 2024. Following the earnings release, Starbucks shares rose as much as 4%.
In China, same-store sales climbed 7% during the quarter, well above Wall Street estimates of a 2.5% increase. Foot traffic in the region rose 5%, while the average ticket increased by 2%. More than 60% of Starbucks’ global store base is located in the U.S. and China.
During the quarter, Starbucks sold a majority stake in its China business to Boyu Capital in a deal valuing the unit at $4 billion.
Globally, Starbucks reported a second consecutive quarter of same-store sales growth, with sales rising 4%, also topping expectations for a 2% increase.
On the earnings front, the company reported adjusted earnings per share of $0.56, missing analysts’ forecasts of $0.59. Revenue, however, exceeded expectations, reaching $9.9 billion compared with estimates of $9.65 billion, according to Bloomberg data.
“Our Q1 results demonstrate our ‘Back to Starbucks’ strategy is working and we believe we’re ahead of schedule,” Niccol said in a statement.
Chief Financial Officer Cathy Smith added that the company sees a “clear line of sight to topline strength into sustainable earnings growth that positions us for long-term profitable growth.”
By Nijat Babayev
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