The coffee chain announced Tuesday that its efforts to improve customer experience are paying off, with quarterly sales figures exceeding Wall Street predictions during the January through March period.
The company based in Seattle reported worldwide same-store sales growth of 6.2% during their fiscal second quarter. This performance surpassed analyst expectations of 4% growth, based on FactSet polling data. Domestic same-store sales performed even better, climbing 7% during the same timeframe.
The coffee retailer has spent the past year implementing strategic changes including boosting staffing levels during peak hours and deploying new technology to better coordinate in-store and mobile order fulfillment. The company has also emphasized more welcoming customer interactions and is renovating locations to create a warmer, traditional coffee shop atmosphere.
As part of its restructuring efforts, the company has streamlined operations and committed to reinvesting those cost savings into its recovery plan. The previous year saw the closure of hundreds of locations across the United States, Canada and Europe, along with workforce reductions affecting at least 2,000 corporate positions.
During a Tuesday video address to staff members, Chairman and CEO Brian Niccol described the quarter as “the turn in our turnaround.”
“Put simply, more customers are getting back to Starbucks as we deliver the best of Starbucks more consistently,” Niccol said.
The company reported second-quarter revenue increased 9% to reach $9.5 billion, surpassing analyst projections of $9.2 billion.
When accounting for one-time expenses, earnings reached 50 cents per share, beating the analyst consensus estimate of 43 cents.
