Starbucks Q2 - China Grows By 91%

Starbucks released their second quarter results on Tuesday night, amongst many other Vestact stocks. The numbers looked good. Global sales increased 15% driven by a 91% increase from China. The comparable period included the Chinese lockdown. Comparable sales in the US grew by 9%.

Between China and the US, those two areas compromise 62% of Starbucks stores.

Revenues increased 11% and earnings per share doubled to 56c. The company is expected to make over $3 a share this year from the $1.16 per share made during a tough 2020.

These numbers show the resilience of the brand and the quality of the business. Starbucks was geared for an epidemic even before we had one with their payments app for placing online orders. The Starbucks app has doubled in users over the last year, now at 16.3 million.

Grabbing a coffee with friends and standing outside to drink will remain a great socially distant way of seeing people. Far safer than going to a bar.

As stores reopen and life goes back to normal, Starbucks will grow even more. It may not be as exciting as some of our other companies but we still see it as a great addition to the portfolio.