This January 6, 2021 photo, Starbucks coffee company logo, and sign will be seen at Palatine Metra Station in Palatine, Illinois. It helped to make up for the weaknesses in China and other markets. (AP photo / Nam Y. Huh)
Starbucks reported record quarterly sales on Thursday, thanks to its strong US operations that helped to make up for weaknesses in China and other markets.
Seattle coffee giant said same-store sales in North America, or where they have been open for at least a year, surged 22% between July and September.
However, existing store sales in China fell by 7% as coronavirus cases again disrupted store traffic. Earlier this week, McDonald’s also reported a decline in same-store sales in China due to COVID cases and economic softening.
According to analysts surveyed by FactSet, Starbucks same-store sales are up 17% globally, below Wall Street’s 18.2% growth forecast.
According to Starbucks, sales for the quarter increased 31% to $ 8.1 billion, a record high. However, it still fell short of Wall Street’s forecast of $ 8.2 billion.
According to the company, net profit more than quadrupled to $ 1.76 billion. Starbucks reported a profit of $ 1.00 per share, adjusting for one-off items. This exceeded Wall Street’s 99-cent forecast.
Starbucks shares fell 3.5% in aftermarket trading.
Starbucks reported earnings the day after announcing a wage increase for US workers. According to the company, US store workers will earn at least $ 15 an hour and up to $ 23 by next summer. Starbucks also raises salaries for employees who have been with the company for more than two years.
Kevin Johnson, President and CEO of Starbucks, said the company’s strong sales momentum and increased operational efficiency will help fund its employee investments.
Starbucks has recorded quarterly sales thanks to its US operations. WGN Radio 720
Source link Starbucks has recorded quarterly sales thanks to its US operations. WGN Radio 720
The post Starbucks has recorded quarterly sales thanks to its US operations. WGN Radio 720 appeared first on Illinois News Today.
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