Starbucks reaches a record high in this year's Q3
It’s 2015 and Starbucks Corporation is on a roll. It’s the 20th anniversary of the Frappuccino, recently acquired tea brand Teavana is ready to grow on a global scale, and Starbucks profits have never been better. This month the coffee brand released its Q3 financial results for the 2015 fiscal year, charting a time period ending on June 28. The results: reported quarterly revenue of $4.9 billion, an 18 percent increase in net revenue over Q3 FY2014. That’s a Q3 record high for Starbucks, and a promising prelude to an even brighter future.
Highlights of the quarter include a global comparable store sales increase of 7 percent, driven by a 4 percent increase in traffic. Broken down by territory the numbers get even better, like in the Americas region where Starbucks saw an 8 percent comparable store sales increase. Starbucks China and Asia Pacific locations did even better, seeing a hefty 11 percent comp sales increase driven by a 10 percent increase in traffic.
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“Starbucks Q3 fiscal 2015 stands as among the strongest and most remarkable quarters in our over 23 years as a public company,” said Starbucks Chairman and CEO Howard Schultz in a press release to investors. “The 4 percent increase in global transactions we reported equates to our having served an additional 23 million customer occasions in Q3 of this year over last year, clearly evidencing a continuation of the strong momentum we have seen across our business and around the world this fiscal year.”
A good portion of this strong quarter can be attributed to the investments that Starbucks has made in its own growth, especially in North America where the this last quarter saw the deployment of promising new technology like the expansion of its mobile order and pay feature—first throughout the Pacific Northwest and then to more than 4,000 company-operated stores. Sales could increase even further as Starbucks moves forward with plans to fully roll out mobile order and pay services across the United States by the holiday season. Starbucks also boosted profits with the successful launch of 431 new stores within the quarter, as well as efforts to revamp and improve existing locations.
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According to Starbucks CFO Scott Maw, striking a balance between the investments that Starbucks makes in itself is key to sustaining and promoting this kind of record growth.
“Starbucks very strong year over year financial performance in Q3 demonstrates our commitment to delivering best in class financial and operating results while at the same time investing in our future growth,” he added to the Starbucks press release. “We believe that by getting this balance right, we will be able to continue delivering exceptional growth, profitability and increased returns to our shareholders.”
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