Starbucks has reported a stronger quarterly profit as customers in the US continued shelling out more money at its cafes. The Seattle-based chain said global sales at established locations rose six per cent for its second fiscal quarter, including in the US, where it has more than 11,000 cafes. Operating margin also improved as a result of lower costs for ingredients, and the company raised its profit outlook for the year. Chief Operating Officer Troy Alstead said the domestic sales incre
ase was the result of an uptick in customer visits, as well as people spending more on average when they visited.
He noted that Starbucks delivered the stronger sales despite the severe weather, which has been cited by companies including Dunkin’ Brands and McDonald’s for weak sales.
Starbucks keeps finding ways to attract customers or getting them to spend more.
The measures have included price hikes, getting people to sign up for its loyalty program to boost visits, and the rollout of new breakfast sandwiches and bottled juices.
During the first three months of the year, sales at established locations also rose six per cent in the unit encompassing Europe, the Middle East, and Africa, where Starbucks has struggled to compete against local cafes in recent years.
In Asia, the figure rose 7 per cent.
For the quarter, the company earned $US427 million ($A461.32 million), or 56 cents per share, which was in line with Wall Street expectations. A year ago, it earned $US390.4 million, or 51 cents per share.
Revenue rose to $US3.87 billion, but was short of the $US3.96 billion analysts expected.
The company stood by its outlook for comparable sales to be up mid-single digits for the year. It now expects to earn between $US2.62 and $US2.68 per share, from its previous guidance of $US2.59 and $US2.67 per share.
Its stock rose $US1.10 to $US72.19 in after-market trading.
AP
