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Starbucks reports 7% increase in Q1 revenue

DBR Staff Writer Published 27 January 2017

Starbucks has reported a 7% increase in its consolidated net revenue to $5.7bn for the fiscal first quarter ended 1 January 2017, compared to $5.3bn in the same period last year.

The coffee company stated that the growth was mainly driven by incremental revenues generated through the 2,163 new stores it opened during the last one year besides the 3% growth in global comparable store sales.

Starbucks chairman and CEO said: “Starbucks is engaging more deeply – and more frequently – and expanding its base of loyal customers faster and more consistently today than ever before.

“The trust and confidence our customers have in the Starbucks brand is fueling our flywheel and propelling our business forward in markets and channels all around the world.”

In Americas, there was an increase of 3% for the coffee chain giant in comparable store sales while in China, the company saw a 6% growth in Q1 FY17.

The Americas segment generated $4bn in the reported quarter, an increase by 7% compared to Q1 FY16 which has been credited to the opening of 884 new stores.

In China and Asia/Pacific, Starbucks collected $770.8m in Q1FY2017, representing a growth by 18% in comparison to the same period last year courtesy of the opening of 1,003 new stores.

Through the Starbucks Cards program in both the US and Canada, the company collected $2.1bn in the reported first quarter, an increase of 15% compared to what it had brought in the prior year.

Starbucks stated that the revenue made through Starbucks Card transactions had made up for 40% of its company-operated transactions in the US.

Mobile orders made up 7% of Starbucks’ US operated transactions in the reported period, growing from the figure of 3% in the previous year. The US company-operated transactions saw a 27% contribution coming in the form of mobile payments.

Starbucks revealed that it opened doors for 649 new locations during the first quarter 2017 to take its overall tally of coffee chains to 25,734 spread across 75 countries.

Image: Starbucks made revenue of $5.7bn in Q1 FY17. Photo: courtesy of Starbucks Corporation.