Starbucks Posts Impressive Holiday Season Growth
Starbucks got good news just as it rolls out an array of marketing pushes after five quarters of sluggish growth: holiday quarter sales jumped 13%, to $4.8B, which beat analysts' expectations. The 5% increase in stores open 13 months or more also finished ahead of predictions. Additionally, revenue ($983.1M, up from $540.7M in 4Q13) and earnings per share ($0.80) set new benchmarks for the company.
The Seattle-based coffee giant's purchase of a stake in Starbucks Japan fueled the impressive growth. And an ambitious slate of retail touch-ups could propel it further. Starbucks will start selling beer and wine in a quarter of its 12K locations. That will complement expanded food options focused on lunch and dinner meals. On the coffee front, the Chestnut Praline latte was a holiday hit. And as Bisnow wrote yesterday, the company's Starbucks Reserve initiative looks to lure back discerning caffeine junkies recently lured away by more, of course, artisanal purveyors.