Higher profits brewing for prolific retail tenant Starbucks
Coffeehouse chain shuttered 400 locations at start of pandemic
As Starbucks attempts to reel customers away from their home-brewing habits, the company says it expects higher profits this year.
It’s a welcome sign for owners of retail space.
As sales plummeted last year, Starbucks shuttered 400 stores across the country. But now the coffeehouse chain’s business is growing again. The company said Tuesday that global same-store sales in its March-ended quarter increased 15 percent from the same period last year, the Wall Street Journal reported.
Same-store sales in the U.S. rose 9 percent, while international sales accounted for the majority of the growth. However, the figures fell below analysts’ expectations for sales to grow 17 percent globally.
The chain also raised earnings expectations for the year to between $2.65 and $2.75 a share, up from $2.42 to $2.62.
Like many stores, Starbucks has attracted more members to an online loyalty program. In the last quarter, it had 23 million U.S. members, an 18 percent increase from last year.
However, it’s unknown whether the chain will open more stores. Even retailers who have done well during the pandemic, including Starbucks competitor Dunkin, are shuttering some stores.
[WSJ] — Sasha Jones