Starbucks reported a challenging quarter, with CEO Laxman Narasimhan acknowledging the need for improvement. The company's sales were significantly impacted by adverse weather in January, and it missed revenue expectations with U.S. sales down 3% and global sales down 4%. Transactions decreased by 6%. Despite these setbacks, 31% of Starbucks' sales were generated through mobile orders and payments last quarter. The company is planning to expand its mobile app to all users to boost sales from occasional customers, and is also developing new product lines including low-calorie and plant-based options, and a new energy beverage. Additionally, Starbucks' new Lavender platform performed nearly as well as its popular Pumpkin Spice Latte.
I can't remember the last time $SBUX used weather as an excuse for top-line weakness. But, the company continues to suggest that it is largely 'occasional' customers for top-line weakness. Uh huh. Riiiight.
While this is happening, this is literal cope for their product reaching saturation. https://t.co/dm5kx5PA6G
Coffee! You already sell coffee! https://t.co/yHAz4Npu3A
"We had a tough quarter. We need to do better, and we will." -Laxman Narasimhan. $SBUX
black coffee? https://t.co/eSXWIQPTdd
Starbucks doing great as long as you ignore the U.S. and China. $SBUX
Starbucks operates more than 20,000 stores outside North America. $SBUX
When I worked in retail many moons ago, I occasionally worked a shift in a store (@Gymboree, $RH). But, $SBUX CEO may have taken it too far by likely spending a massive amount of time in stores earning his barista "black apron."
Gotta make Patrick Doyle the exec chair of $sbux
31% of Starbucks sales came through mobile order and pay last quarter. $SBUX
Stocks making the biggest moves after hours: Amazon, Starbucks, Pinterest, Advanced Micro Devices and more https://t.co/N5dux7iFem
Starbucks also planning more low-calorie options for its beverages and more plant-based options. Company also planning more food innovation. $SBUX
Oh here it is: Starbucks developing a zero to low calorie energy beverage. $SBUX
Starbucks new Lavender platform performed nearly as well as the PSL, apparently. $SBUX
On weather: Yes it is a major factor in early year restaurant results and January weather was bad. That's no surprise from Starbucks. $SBUX https://t.co/KQByIdmarO https://t.co/ON3or1mAkq
Starbucks planning to open its app for everybody this year in a bid to generate more sales from occasional customers. $SBUX
Price increases gone too far: $SBUX misses on revs, eps, sss with US down 3% and global down 4%. Transactions most telling down 6%.