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(Reuters) – Starbucks Corp. announced Thursday annual profits higher than those of Wall Street, while its new Cloud Macchiato, Matcha tea and cold beers in the United States and its fast distribution network in China attracted more and more of visitors. customers.
Shares of the world's largest coffee chain, which grew about 20% this year, reduced their gains after rising 2%. They were still on the verge of reaching a record on Friday.
New beverages and a refreshed lunch menu, focused on improving customer traffic during the lunch break, boosted comparable store sales by 4% in established US coffees. Analysts were expecting sales growth of 3.58%.
Starbucks also added 13% more active members to its US loyalty program, expanding its distribution services to nearly 1,600 stores in seven markets, along with UberEats, and accelerating its order and fulfillment processes. payment on its applications and coffees.
By partnering with Alibaba Group Holding Ltd., the coffee chain has also extended its distribution network to its second largest market, China, to more than 2,100 stores in 35 cities.
This comes as it competes with local start-up Luckin Coffee, whose rapid growth pushed the company to file its initial public offering in the US earlier this week.
Same-store sales increased 2% in China and the Asia-Pacific region, driven by a 2% increase in the average ticket price. Analysts were expecting a 1.5% rise, according to Refinitiv's IBES data.
Starbucks also raised its adjusted earnings guidance for the year from $ 2.75 to $ 2.79 per share from previous expectations of $ 2.68 to $ 2.73 per share. Analysts were waiting on average $ 2.71 per share.
The company said that operating margins in the Americas would now be "slightly up" instead of the expected decline earlier due to higher prices, restructuring efforts to reduce costs and lower costs. lower investment compared to last year.
Net income attributable to the Company was $ 663.2 million, or 53 cents per share, in the second quarter ended March 31, compared to $ 660.1 million, or 47 cents per share, a year earlier.
With the exception of certain items, the company earned 60 cents, 4 cents more than the estimate.
Total net income increased 4.5% to $ 6.31 billion, but was slightly lower than the estimate of $ 6.32 billion.
(Report by Aishwarya Venugopal and Nivedita Balu in Bengaluru, edited by Arun Koyyur)
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