(CTN News) – Starbucks reported record revenues in its fourth-quarter earnings report, as the company improved its sales and operational efficiency at its existing stores, as well as opening hundreds of new stores throughout the quarter.
According to the company, revenue for the period between July and September rose 11% to $9.4 billion.
As reported by FactSet, Wall Street analysts polled by FactSet had expected $9.3 billion from the company, but it exceeded that amount.
There have been 816 net new stores opened by the Seattle coffee giant in the quarter, bringing the company’s total number of stores to 38,000 worldwide by the end of its fiscal year.
A revamp of the company’s existing Starbucks stores in North America has also helped improve sales and improve the efficiency of its operations, according to the company.
It was announced last fall that the company was going to invest $450 million in a revamp. New workstations have been implemented that reduce the amount of time and effort it takes to make iced drinks, which make up 75% of U.S. sales today.
As well as installing new ovens and warmers for hot food, the company is also upgrading its heating systems.
It is believed that same-store sales in the United States Starbucks increased by 8%, beating analyst expectations of an increase of 6.8%, since it represents sales in stores that have been open for more than one year.
Consumers in the United States spent more on items such as food and customized drinks during their recent visits to stores, with same-store sales increasing by 8%, store traffic growing by 2%, and food sales increasing by 5%.
It was reported that same-store sales grew by 2% in China, the company’s second-largest market, in comparison to the same period last year. According to Starbucks, store traffic in China increased by 4%, but consumers spent less per visit as a result of that increase.
There was also a 39% increase in net income from $1.1 billion to $1.2 billion, or $1.06 per share, representing a 39% increase in net income. Moreover, that figure was higher than the 97 cents expected by analysts on Wall Street, which was quite a surprise.
In premarket trading on Thursday, Starbucks shares rose more than 6%.