If you're a Starbucks coffee lover and you keep coming back to grab your favorite latte, brewed coffee or caramel machiatto, then you made it possible for Starbucks Corp to reach a major quarterly profit.
Starbucks net earnings surged 22 percent to $626.7 million or around 41 cents per share. Likewise, total revenue including newly opened stores went up by 18 percent to $4.88 billion in the third quarter topping the Wall Street expected $4.86 billion, as per The Economic Times.
Starbucks reported on Thursday that their latest offerings of food, technology and drinks helped them captivate more customers.
According to Reuters, transactions at Starbucks outlets opened for the last 13 months were above 7 percent in the latest quarter globally, with an approximated 23 million more client sales than that of the earlier quarter as various sales promotions and advertisements took hold.
Same-store sales went up unexpectedly by 8 percent more than predicted for the third fiscal quarter which ended June 28 in the Americas unit which includes the United States, Latin America and Canada. "Flat White" and the limited-time offer "S'mores Frappuccino" are among the products included in the revitalized menu together with bistro boxes and breakfast sandwiches which helped boost up sales in the region.
Starbucks Chief Financial Officer Scott Maw related via phone conversation that customers are even "trading up" to new menus like a fancy breakfast sandwiches. Maw also observed that aside from beverages or coffee products, food was paired in their orders, as per CTV News.
Starbucks also praised its new pay technology and mobile order introduced at the estimated 4,000 U.S cafes for pushing their sales up and profit. This leap into technology potentially lured in customers who have been disappointed by long waiting times and most especially long lines at the counter.
Chief Executive Howard Schultz said, "In those stores where mobile order and pay has been deployed, lines are shorter, service is faster and in-store operations are more efficient." He also added that the service will be ready for use nationwide just in time for the holiday season.
Starbucks' mobile app includes its loyalty program which encouraged the customers to come back by gratifying them with "stars". These "stars" can be used for an upgrade of complimentary drinks and food.
With the kind of innovations that Starbucks provide in their company, expect those numbers and figures to rise up by the end of the year.
