Starbucks Expands Afternoon Business Strategy with New Products
Starbucks is focusing on its underperforming afternoon sales by introducing new products like energy drinks, wraps, and sparkling beverages. CEO Brian Niccol highlighted the potential for growth in this segment during a recent earnings call, noting that midday and afternoon hours already generate $11 billion annually but still offer significant room to increase transactions. The company's strategy is showing results: global comparable-store sales rose 7.9% year-over-year, exceeding expectations, while adjusted earnings came in at $0.85 per share—well above the forecast of $0.66. Starbucks also improved its operating margin from 10.1% to 14.4%, driven by cost-cutting and better store operations. The positive results led to a raised full-year guidance, with shares rising nearly 6% in early trading on Thursday. The stock has gained almost 30% this year compared to the S&P 500.
Tickers: $SBUX
Topics: afternoon business growth comparable-store sales new product launches Starbucks