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Starbucks Shows Boost in Sales, Strong Earnings
Starbucks has been branching out beyond coffee into pastries, yogurt, and juices. And it appears to be paying off.
Sales in the quarter that ended last month climbed 13 percent, and profit jumped 25 percent.
Stephens analyst Will Slabaugh says the results were better than what he expected. He says Starbucks is managing to attract new customers and get regulars to spend more.
"They’ve done a great job of saying, 'Here’s another reason for you to come in the store more often.' So increased frequency, and then pull in that guest that may not have come in that day. And then on the other hand,'I’m used to going in there for my coffee, so while I’m in here, why not go ahead and get a yogurt,"' Slabaugh said.
The biggest growth for Starbucks right now is in Asia. Sales there rose 29 percent. Starbucks has added more than 500 stores in Asia over the past year. Slabaugh says Starbucks appears to be doing well there in spite of concerns about a slowing Chinese economy.