(New York) Starbucks posted better-than-expected results for the first three months of the year, supported by the opening of new cafes and improving its margins, according to a press release published on Tuesday.
The Seattle chain achieved $ 8.72 billion in sales during the second quarter of its staggered fiscal year (closed in early October), up 14% year on year.
Wall Street coldly welcomed these figures, which were higher than expected, and in post-closing electronic trading, the stock fell by more than 4%, around 5:30 p.m. (Eastern time).
The growth rate posted over these three months is significantly higher than that of previous quarters. This is the result of an increase in footfall, but also of price increases and branch openings.
The amount of the average invoice rose by 5% over one year, and Starbucks opened 464 cafes net over the period.
Notably, sales increased in China (+3% on a like-for-like basis), the group’s second largest market, after six consecutive quarters of contraction, marking a “faster-than-expected rebound”, according to the general manager, Laxman Narasimhan, who spoke on the earnings conference call.
For him, this is a “turning point” in this market, which has seen the opening of 153 branches, net.
The past quarter has seen the transition between iconic boss Howard Schultz and Laxman Narasimhan, now in charge.
Before retiring, Howard Schultz launched the Reinvention strategic plan in September, which aims to accelerate the company’s growth and improve its profitability.
In the second quarter of its staggered fiscal year, Starbucks saw its operating margin increase from 12% to 15% compared to the same period last year, thanks in particular to price increases and productivity gains.
The Reinvention plan provides, among other things, for the installation of new equipment in cafés in order to shorten the preparation time for hot and cold drinks, as well as pastries and sandwiches.
Net profit was $908 million, 35% higher than in the second quarter of 2022. On a per share basis and excluding exceptional items, the benchmark for the market, it reached 74 cents, better than the 65 expected. by analysts.
Laxman Narasimhan confirmed Starbucks’ full-year targets, including expected revenue growth of 10-12%.