Starbucks revenue and profit soared to record highs during its third quarter topping expectations on Wall Street during a tough period that was marred by outcry from the public over the treatment by the coffee chain of minorities.
Sales were up over 11.5% to end the quarter at $6.31 billion compared to $5.66 billion during the same three months one year ago. Starbucks released its earnings for its fiscal third quarter following the closing bell on Thursday, The chain of coffeehouses said more people joined its loyalty program who purchased more during the quarter that ended July 1.
The coffeehouse chain has worked on making its loyalty program stronger, as competition increased from places such as Dunkin’ Donuts, Panera Bread and McDonald’s.
It announced that it had added 1.9 million more active members during the quarter ending July 1, which was up 14% from the same period last year and brought the total number of users to 15.1 million. Drinkers of coffee and tea spent 3% more each trip they made to the coffeehouses helping to fuel sales at same-stores.
In its most recent quarter the ride was rather bumpy for Starbucks as it closed more than 8,000 locations in the U.S. for one day during May to give racial bias training to its employees. The company took several dramatic steps in trying to restore its image after one of its store managers called Philadelphia police on a pair of black men who wanted to use the bathroom, which ignited outrage by the public.
Starbucks adjusted earnings per share reached 62 cents in comparison to analyst expectations of 61 cents. Revenue reached $6.23 billion while analysts were expecting $6.25 billion. Sales at same stores were up 1% worldwide versus an expected growth of 0.9%.
Starbucks cut its outlook for same-store sales for its complete fiscal year, while growth across the U.S. has cooled, the company has embarked on aggressive plans of expansion overseas focusing on China and the 1.4 billion in population of the world’s second largest economy.
Although the largest driver of growth lately for Starbucks has been China, sales at same stores there were down 2% during its fiscal third quarter, in comparison to increases during the previous two quarter of between 4% and 6%. Sales of same stores across the U.S. rose just 1%.