Starbucks reported record revenue in its fourth quarter as it improved sales and efficiency at its existing stores and opened hundreds of new ones.
Revenue for the July-September period rose 11% to $9.4 billion. That surpassed Wall Street’s expectation of $9.3 billion, according to analysts polled by FactSet.
The Seattle coffee giant opened 816 net new stores in the quarter, ending its fiscal year with more than 38,000 stores worldwide.
But the company said an ongoing revamp of its existing North American stores is also improving sales and making operations more efficient.
The company announced the $450 million revamp last fall. It includes new work stations that cut the time and effort it takes to make iced drinks, which now make up 75% of U.S. sales. The company is also installing new ovens and warmers for hot food.
Global same-store sales – or sales at stores open at least a year — rose 8%, also surpassing analyst forecasts for a 6.8% increase. U.S. same-store sales rose 8%; store traffic was up 2% and consumers spent more per visit on things like food and customized drinks.
Same-store sales in China – the company’s second-largest market – rose 2%. Starbucks said store traffic in China rose 4% but consumers spent less per visit.
Net income jumped 39% to $1.2 billion, or $1.06 per share. That was also higher than Wall Street expectations for 97 cents.
Starbucks shares rose more than 6% in premarket trading Thursday.