Starbucks Corporation reported financial results for its 13-week fiscal first quarter ended January 1.
Q1 Fiscal 2017 Highlights:
Global comparable store sales increased 3 percent comprised of a 3 percent increase in the Americas, a 5 percent increase in CAP, and a 1 percent decrease in EMEA.
U.S. comparable store sales increased 3 percent comprised of a 5 percent increase in average ticket and a 2 percent decrease in transactions. Adjusting for the estimated impact of order consolidation related to the new Starbucks Rewards loyalty program, average ticket grew 3 percent with transactions flat to prior year.
Record consolidated net revenues of $5.7 billion grew 7 percent over prior year.
Record Q1 consolidated operating margin expanded 10 basis points to 19.8 percent.
Record $2.1 billion loaded on Starbucks Cards in the U.S. and Canada in Q1, up 15 percent year-over-year; Starbucks Card transactions reached 40 percent of U.S. company-operated transactions.
Active membership in Starbucks Rewards grew 16 percent year-over-year to 12.9 million members in the U.S.
Mobile Order and Pay represented 7 percent of U.S. company-operated transactions in the quarter, up from 3 percent in the prior year; Mobile Payment reached 27 percent of U.S. company-operated transactions.
The company opened 649 net new stores in the quarter, bringing total stores to 25,734 in 75 countries worldwide.
“Starbucks is engaging more deeply—and more frequently—and expanding its base of loyal customers faster and more consistently today than ever before,” says Howard Schultz, chairman and CEO. “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.”
“We are pleased with the record Q1 financial and operating results we announced today, particularly given that the results were delivered in the face of a challenging environment for restaurant retailers overall,” says Scott Maw, CFO. “As always, credit for our success belongs to the more than 300,000 Starbucks partners around the world who proudly wear the green apron and who deliver an elevated Starbucks Experience to our customers now over 90 million times, each week.”
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