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Starbucks (SBUX, $84.68) on Thursday reported quarterly earnings and revenue that topped analysts’ estimates, fueled by U.S. customers spending more on iced coffee drinks and Pumpkin Spice Lattes, which climbed 70% compared to a year ago. Cold beverages accounted for more than three-quarters of beverage sales at U.S. company-owned cafes. The Seattle-based coffee company also said U.S. traffic improved in the quarter and has nearly bounced back to 2019 levels.
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Net sales for the period rose 3.3% to $8.41 billion. Global same-store sales increased by 7%, fueled by increased spending in its home market. In the United States, Starbucks reported same-store sales growth of 11%, which was the result of people spending more on average and a slight uptick in traffic. Prices were also up 6% from a year ago, but executives said they don’t plan to raise prices anymore for the time being.
Why it matters
Starbucks jumped back to winning ways by also tapping into its famous loyalty program. The program saw its active membership climb 16% to 28.7 million people in the quarter. In September, the Seattle-based company unveiled a broad plan to reinvent its business to address changing consumer and employee needs. Some of those updates will include new equipment to make cold drinks more easily.
