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Starbucks U.S. transactions fall 2%

The coffee chain’s same-store sales rise 3% worldwide

Starbucks Corp. served fewer customers in the fiscal first quarter ended Jan. 1, but customers spent more money per order, helping Starbucks generate a 3-percent domestic same-store sales increase in the period, the company said Thursday. 

The Seattle-based coffee giant said U.S. same-store transactions fell 2 percent in the period, but the average ticket rose 5 percent.

The company said that, adjusting for the impact of “order consolidation” related to its new loyalty program, the average ticket grew 3 percent and transactions for the period were flat.

The stock fell 1.5 percent in after-hours trading on Thursday.

The company highlighted strong results from its loyalty- and mobile-ordering programs. Customers loaded $2.1 billion on Starbucks cards in the U.S. and Canada in the quarter, up 15 percent. Starbucks Card transactions represented 40 percent of transactions at company-owned locations. 

Mobile ordering also gained traction. Mobile order and payment represented 7 percent of transactions, up from 3 percent a year ago. Mobile payment represented 27 percent of domestic transactions.

“Starbucks is engaging more deeply — and more frequently — and expanding its base of loyal customers faster and more consistently today than ever before,” said CEO Howard Schultz in a statement.

Same-store sales increased 3 percent worldwide. Revenues rose 6.7 percent to $5.7 billion, up from $5.4 billion. Net earnings increased 9.3 percent to $751.8 million, or 51 cents per share, from $687.6 million, or 46 cents.

Contact Jonathan Maze at [email protected]

Follow him on Twitter at @jonathanmaze

TAGS: Sales Trends
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