Starbucks U.S. Hits Higher Sales After Food Menu Upgrade
Kizha Trovillas | | Jul 25, 2014 05:42 AM EDT |
(Photo : Reuters)
Starbucks Corp announced higher quarterly sales after introducing new menu items in their U.S. cafes.
The world's biggest coffeehouse chain posted a report for its third fiscal quarter on Thursday that shows higher sales growth of six percent at established stores around the world.
The report included a higher-than-expected rise of seven percent in U.S. outlets, while analysts from Thomson Reuters predicted only an increase of 5.3 percent globally.
Like Us on Facebook
A boost in food purchases helped increase the chain's sales in the U.S., according to Troy Alstead, Starbucks' chief financial officer. Alstead noted in particular the 40 percent growth of their breakfast sandwiches compared to the sales last year.
Starbucks has been rolling out new packaged products. It has revamped food items in their stores to diversify from its coffee business norm.
The push to persuade customers to buy food items when they come in for a drink has been successful since Starbucks introduced bakery items and breakfast sandwiches. The items include a new salad box, beef brisket baguettes, grilled cheese and chicken sandwiches.
In the latest quarter, Teavana Oprah Chai, a blend designed by Oprah herself, has been introduced in different Starbucks outlets. The launch also helped drive growth, Alstead said in a phone interview with analysts.
In addition, Starbucks also partnered with Danone SA, a French food corporation, last year to trade Greek yogurt parfaits and other items.
The chain's net income was US$512.6 million for the latest fiscal quarter. It is equivalent to 67 cents per share. The income was higher than last year with only US$417.8 million or 55 cents per share. Its revenue increased to 11 percent with US$4.15 billion compared to the projected $4.14 billion increase by analysts.
Starbucks set targets of at least 10 percent rise on its revenue for fiscal 2015. Income per share is expected to rise to 15 to 20 percent from its 2014 earnings.
©2015 Chinatopix All rights reserved. Do not reproduce without permission
EDITOR'S PICKS
-
Did the Trump administration just announce plans for a trade war with ‘hostile’ China and Russia?
-
US Senate passes Taiwan travel bill slammed by China
-
As Yan Sihong’s family grieves, here are other Chinese students who went missing abroad. Some have never been found
-
Beijing blasts Western critics who ‘smear China’ with the term sharp power
-
China Envoy Seeks to Defuse Tensions With U.S. as a Trade War Brews
-
Singapore's Deputy PM Provides Bitcoin Vote of Confidence Amid China's Blanket Bans
-
China warns investors over risks in overseas virtual currency trading
-
Chinese government most trustworthy: survey
-
Kashima Antlers On Course For Back-To-Back Titles
MOST POPULAR
LATEST NEWS
Zhou Yongkang: China's Former Security Chief Sentenced to Life in Prison
China's former Chief of the Ministry of Public Security, Zhou Yongkang, has been given a life sentence after he was found guilty of abusing his office, bribery and deliberately ... Full Article
TRENDING STORY
-
China Pork Prices Expected to Stabilize As The Supplies Recover
-
Elephone P9000 Smartphone is now on Sale on Amazon India
-
There's a Big Chance Cliffhangers Won't Still Be Resolved When Grey's Anatomy Season 13 Returns
-
Supreme Court Ruled on Samsung vs Apple Dispute for Patent Infringement
-
Microsoft Surface Pro 5 Rumors and Release Date: What is the Latest?