Starbucks tops fourth quarter forecast thanks to higher prices in the US and a rebound in China
Higher prices in the United States and a rebound in China helped fuel better-than-expected quarterly sales at Starbucks Corporation.
Sales at stores in the US and Americas which have been open for at least a year grew 4% during its fourth quarter, beating analyst forecasts of 2.7%.
Kevin Johnson, CEO of Starbucks, said during an earnings call that it was the company’s strongest same-store sales in the US in five quarters.
Elsewhere, in the China and Asia-Pacific region (CAP), the coffee chain said that comparable store sales increased 1%.
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The firm also cited its focus on cold drinks such as nitro cold coffee and caffeinated fruity beverages as key drivers of growth.
In its fourth quarter, Starbucks recorded consolidated net revenues of $6.3bn, up 11% over the prior year.
“As we enter fiscal 2019, we are executing against a clear growth agenda, with a focus on our long-term growth markets of the U.S. and China,” said CEO Kevin Johnson.
“We are also excited about the long-term growth potential of our new Global Coffee Alliance with Nestlé. I’m incredibly proud of our 350,000 Starbucks partners around the world and pleased with the continued progress in our growth agenda.”
The world’s largest coffee chain plans to open 2,1000 new stores globally over the next financial year.