Starbucks demonstrates “power of brand”
Starbucks has reported record results for the second quarter of its financial year, which it says shows the “expanding power of its brand”.
Global profit increased 11% to $376.1m (£216m) for the three months to 3 April while revenue increased 10% to $2.8bn (£1.7bn).
Like for like sales, which strip out new store sales, increased 7% driven by more customers and increased spend. No specific figures were given.
The coffee house chain says its 40th Anniversary celebrations are driving global momentum for the brand.
The UK business reported single digit like-for-like sales growth despite falling footfall in the high street.
During the period the company introduced its new logo and a number of “new look” coffee houses and menu items in the UK, including bite-size cake treats called “Petites”, which it claims has boosted afternoon sales.
Sales of Frappucino, its chilled blended drinks range, were up 15% in the UK during March.
Starbucks revealed a marketing push for the Frappucino brand earlier this week to support the launch of a bottled product for the retail market.
Howard Schultz, chairman, president and CEO of Starbucks says: “Our sales, traffic and customer trends all point to the expanding power of the Starbucks business and brand. And our 40th anniversary celebration continues to resonate around the world, driving strong engagement among our partners and our customers.”
The company says it expects high commodity prices to affect the business in the coming year but believes it remains well positioned to deliver 15 to 20% growth in earnings per share.
