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.
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.
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.
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.