Starbucks reports nine per cent growth in revenue

Starbucks has reported consolidated net revenues of US$6.6 billion for its 13-week fiscal first quarter ended December 30, 2018 (Q1). This represents a growth of nine per cent over the same period a year prior, and sets a new record for the company. “Starbucks delivered solid operating results in the first quarter, demonstrating continued momentum in our business, as we drive our growth-at-scale agenda with focus and discipline,” Starbucks President and CEO Kevin Johnson says. “We are particularly pleased with the sequential improvement in quarterly comparable store transactions in the United States, underpinned by our digital initiatives and improved execution of our in-store experience.  With this solid start to the fiscal year, we are on track to deliver on our full-year commitments.” Global comparable store sales increased four per cent, driven by a three per cent increase in average ticket. Americas and US comparable store sales also increased four per cent, with transactions remaining flat. China/Asia Pacific comparable store sales increased three per sent, including one per cent transaction growth. China comparable store sales increased one per cent, with transactions down two per cent. The company opened 541 net new stores in Q1, yielding 29,865 stores at the end of the quarter, a seven per cent increase over the prior year. Over two-thirds of the net new store openings were outside the US, and approximately 50 per cent were licensed. “Comprehensive efforts to streamline our business have allowed us to focus on three key strategic initiatives that position Starbucks for long-term success: accelerating growth in our targeted markets of the US and China, expanding the global reach of the Starbucks brand through our global coffee alliance with Nestlé, and increasing shareholder returns,” Johnson says. “Combined with our efforts to build and amplify the Starbucks brand, we expect these initiatives will position the company to drive predictable, sustainable growth and shareholder returns for years to come.”