Starbucks has upgraded its top-line guidance for this year after recording strong sales growth momentum during the second quarter.
The coffee giant now expects both global and US comparable sales to increase at least 5 per cent for the full fiscal year, compared to the previous 3 per cent outlook.
The increase in optimism comes after global comparable store sales grew 6.2 per cent in the quarter ended March 29, accelerating from the 4 per cent uplift in the first quarter. The growth was driven by a 3.8 per cent increase in comparable transactions and a 2.3 per cent rise in average ticket.
North America comparable store sales soared 7.1 per cent, with the US market up 7.1 per cent. International comparable store sales rose 2.6 per cent, and China sales were up 0.5 per cent.
Consolidated net revenues jumped 9 per cent to $9.5 billion (up 8 per cent on a constant currency basis).
The chain opened 11 net new stores in Q2, ending the period with 41,129 stores, including 16,944 in the US.
On the bottom line, operating income surged 37 per cent to $828 million, and net income rose 33 per cent to $510 million.
“Our second quarter marked the turn in our turnaround as our Back to Starbucks plan drove both top and bottom line growth,” commented Brian Niccol, chairman and CEO.
“This is the Starbucks our customers deserve and the Starbucks we believe will deliver long-term growth and value for our partners and shareholders as we execute consistently, at-scale.”