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Starbucks was one of many stocks to report its results last week. Happily, the coffee company posted market-beating numbers. This set of earnings was a bit messy because their various operating regions have been affected differently by post-Covid reopening.
Their most significant region is the US, where they have seen 10% growth compared to 2019 figures. Their International operations are still only trading at 80% of 2019 turnover levels. Management is confident about a continued global recovery because they have raised group guidance for upcoming quarters.
The growth in their loyalty program is very encouraging. Starbucks reported a 48% increase in active loyalty customers, accounting for 51% of all US sales. Having sticky customers creates a solid foundation for future growth.
The technology companies have done well from all the lockdowns. Starbucks is one of the companies that will benefit from the re-opening of the global economy. Interestingly, three-quarters of all liquid sales are cold beverages, not all of which are caffeinated. Can we still call Starbucks a coffee company?
