Starbucks profits rise as sales recover from pandemic

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Starbucks profits rise as sales recover from pandemic

StarbucksStarbucks Corp. said it expects profit to increase in the next year as sales recover at cafes that it is operating more efficiently than before the coronavirus pandemic.

The coffee giant's sales fell last year as it closed businesses first in Asia and then across the globe when the pandemic took hold.Starbucks has closed the store since last summer, when public restrictions on business and business beginning to ease in some areas of the U.S.It has pushed to-go ordering of beverages and increased mobile options.

Starbucks said Tuesday that global same-store sales in its first quarter ended in March increased by 15% over the same period last year.International markets accounted for much of the growth.Same -store sales in the US rose 9%.

Starbucks has said it expects profit to rise this year more than previously expected.The chain updated its full-year guidance for earnings of $2.65 to $2.75 a share, previously up from $2.42 to $2.62.The chain has also bumped up its projections for store margins and sales.

The coffee giant is among restaurant companies working to keep consumers from the home-brewing habits they picked up during the pandemic.Nestl SA, the Swiss packaged food company that produces Starbucks-branded products in addition to its own, said last week that at-home coffee sales drove its best quarterly sales growth in about a decade.

Starbucks has also attracted more people to its loyalty program, as it has tried to boost in-person sales.In the US, the chain said it had 23 million members in the last quarter, an 18% increase from last year.Through repeated purchases, members receive deals.

The chain is also developing a more sit-down stores as it phases out some to-go locations.Starbucks said it closed 300 stores in the US and Canada during the quarter as part of this shift.

For the quarter, Starbucks reported earnings averted from one-time items of 62 cents a share, exceeding expectations for analysts polled by FactSet for earnings of 53 cents a share by that metric.Sales of $6.7 billion were near expectation.

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