Starbucks Q2 net revenues rise 2% to $8.8bn

Starbucks has announced that its consolidated net revenues rose by 2% to $8.8bn (£6.5bn) in the second quarter ended 30 March, despite global comparable store sales declining 1% due to a 2% fall in transactions. 

In North America, comparable store sales saw a 1% fall that was driven by a 4% decline in transactions, though this was “partially” offset by a 3% increase in average spend. Across the entire US store sales declined 2%.

Internationally, sales rose 2% thanks to a 3% uptick in transactions. This was offset by a slight 1% decline in average spend. China comparable store sales were flat due to a 4% rise in transactions and offset by a 4% decline in average spend. 

During the second quarter, Starbucks opened a total of 213 stores and ended the period with 40,789 sites – split into 52% company-operated and 47% licensed. 

Brian Niccol, chairman and chief executive of Starbucks, said: “My optimism has turned into confidence that our ‘Back to Starbucks’ plan is the right strategy to turn the business around and to unlock opportunities ahead.

“Improving transaction comp in a tough consumer environment at our scale is a testament to the power of our brand and partners getting ‘Back to Starbucks.’ We are on track and if anything, I see more opportunities than I imagined.”

Cathay Smith, chief financial officer of Starbucks, added: “While our financial results are far from Starbucks’ potential, we are working to build back a better business. We are developing new muscles to test, iterate and scale quickly, in service of long-term, durable growth and strong returns on invested capital.”