Starbucks’ ‘Exceptional’ Quarter Includes Record-Number of New Loyalty Members
By all accounts, “Q1 was an exceptional quarter for Starbucks.” In a quarterly earnings call with analysts, President and CEO Kevin Johnson cited the winning formula: a “healthy balance” of comparable sales growth, new store development, plus the expansion of its Global Coffee Alliance with Nestlé for its retail line. However, that good news was tampered by the announcement of the closure of 2,000+ locations in China in response to the Wuhan coronavirus outbreak.
In the first quarter, Starbucks delivered global revenue growth of 9%, led by strong comp sales growth of 5% and net new store growth of 6% over the last 12 months. Leading the charge were the U.S. and Chinese markets.
For Q1, the U.S. grew revenues by a 9%, led by comp sales growth of 6%, including comp transaction growth of 3% for a third consecutive quarter.
”With a two-year sales comp of 10% for the past two consecutive quarters, it is clear that our focus on the customer experience, beverage innovation and digital customer relationships is working,” said Johnson during the January 28 call with analysts.