business news in context, analysis with attitude

…with brief, occasional, italicized and sometimes gratuitous commentary…

•The Seattle Times reports that Starbucks yesterday “reported a quarterly profit of $663.2 million on revenues of $6.3 billion — up 0.5 percent and 5 percent, respectively, from the same quarter in 2018.” These better-than-expected results were “thanks in part to a raft of new drinks, viral social-media campaigns and steady growth in China.”

According to the story, “Starbucks saw substantial growth across all operations. Globally, same-store sales jumped by 3 percent over last year, which was also slightly ahead of Wall Street forecasts. China was a big piece of that, with a 3 percent increase in same store sales, compared with 4 percent same-store growth in the U.S.”

Here’s an import metric reported by the Times: “Starbucks also bolstered the ranks of its rewards program. The company now has 16.8 million active members in the United States, up some 13% over last year — a key metric, given that members account for 41% of U.S. sales.” That’s a critical business lesson from how Starbucks comes to market - constantly working to nurture and solidify its relationship with its best shoppers.
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