The coffee chain's performance surpassed analyst forecasts, which had predicted a 4% increase in same-store sales and revenue of $9.2 billion. Adjusted earnings were 50 cents per share, beating the 43-cent forecast.
In the US, same-store sales rose 7%, driven by initiatives to improve customer experience, including increased staffing, technology optimization, friendlier service, and store redesigns. Chairman and CEO Brian Niccol said in a statement, "This is the turn in our turnaround." He added, "Put simply, more customers are getting back to Starbucks as we deliver the best of Starbucks more consistently."
This is the turn in our turnaround.
The strong results come after a period of store closures and layoffs. Last year, Starbucks closed hundreds of stores across the US, Canada, and Europe and laid off at least 2,000 non-retail employees. However, specific details on which stores were closed and exact layoff numbers remain unclear. Future sales projections have not been disclosed.
Put simply, more customers are getting back to Starbucks as we deliver the best of Starbucks more consistently.