Starbucks Worldwide Same-Store Sales Growth Remains Steady At 5%



Same-store sales growth

Starbucks (SBUX) reported same-store sales growth of 5% for all stores that have been opened for 13 months or longer. Same-store sales are an important indicator in the restaurant industry and directly drive revenues. Same-store sales measure the percentage change in revenues generated by existing restaurant locations over the similar period a year ago.

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Same-store sales by geographic segment

Starbucks reported same-store sales for its three geographic segments:

  • the Americas
  • China and Asia-Pacific
  • Europe, Middle East, and Africa, or EMEA

Looking at the above graph, you can see that same-store sales have remained unchanged in the China and Asia-Pacific segment. Worldwide, same-store sales have remained at 5% levels for the past 12 months.

Yum! Brands (YUM) and McDonald’s (MCD) each have a presence in the same regions as Starbucks.

The Americas segment

The Americas segment includes the United States, Canada, and Latin America (Brazil and Puerto Rico). Together, these regions accounted for 70% of Starbucks quarterly revenue. Same-store sales increased by 5%—that’s unchanged from a year ago.

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The EMEA segment

The Europe, Middle East, and, Africa segment accounted for 7% of Starbucks revenues in the first quarter of 2015. Same-store sales growth declined to 4% during the quarter compared to 5% in the corresponding quarter a year ago.

The China and Asia-Pacific segment

The China and Asia-Pacific segment includes China, Thailand, Singapore, and Australia. This segment accounted for 9% of Starbucks revenues in the first quarter of 2015. Same-store sales remain unchanged at 5% compared to the corresponding quarter a year ago.

Investors who would like to invest in the restaurant industry as a whole can invest in the Consumer Discretionary Select Sector SPDR Fund (XLY), which includes several other restaurants such as Darden (DRI) and Chipotle Mexican Grill (CMG).

Same-store sales are driven by traffic and ticket. Starbucks is one of the few companies that reports these details. We’ll look at these figures, next.


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