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Starbucks brews Q1 growth

Starbucks brews Q1 growth

Starbucks reported today week that its Q1 comparable store sales were up 6 percent in China and 3 percent globally and in the U.S. and Americas during for the 13-week period ending Jan. 1.

"Starbucks is engaging more deeply — and more frequently — and expanding its base of loyal customers faster and more consistently today than ever before," Chairman and CEO Howard Schultz, said in a company press release. "The trust and confidence our customers have in the Starbucks brand is fueling our flywheel and propelling our business forward in markets and channels all around the world."

CFO Scott Maw said the chain is pleased with the results, especially since restaurant growth has either remained flat or declining over the past year.

Other highlights included:

  • U.S. comparable store sales increased 3 percent comprised of a 5 percent increase in average ticket and a 2 percent decrease in transactions. Adjusting for the estimated impact of order consolidation related to the new Starbucks RewardsTM loyalty program, average ticket grew 3 percent with transactions flat to prior year.
  • Record consolidated net revenues of $5.7 billion grew 7 percent over prior year.
  • Record Q1 consolidated operating income increased 7 percent to $1.1 billion.
  • Record Q1 consolidated operating margin expanded 10 basis points to 19.8 percent.
  • GAAP EPS of $0.51 increased 11 percent over Q1 FY16.
  • Non-GAAP EPS of $0.52 increased 13 percent over Q1 FY16 non-GAAP results.
  • Record $2.1 billion loaded on Starbucks Cards in the U.S. and Canada in Q1, up 15 percent year-over-year; Starbucks Card transactions reached 40 percent of U.S. company-operated transactions.
  • Active membership in Starbucks Rewards grew 16 percent year-over-year to 12.9 million members in the U.S.
  • Mobile order and Pay represented 7 percent of U.S. company-operated transactions in the quarter, up from 3 percent in the prior year.
  • Mobile payment reached 27 percent of U.S. company-operated transactions.
  • And the company opened 649 net new stores in the quarter, bringing total stores to 25,734 in 75 countries worldwide.

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