Strong Sales Growth Will Return Next Year, Says Starbucks

International coffee chain Starbucks said that it expected a strong growth in its sale next year, the company said.

The company expects a 17 per cent and 22 per cent jump in same-store sales in the United States and the Americas respectively for next year.  And a yet larger – between 25 per cent and 30 per cent, spike in same store sales is expected for it international market by the company.

If the company’s forecasts come true, it would be a major turnaround for it.

In the three months that ended on September 27, there was a drop of 9 per cent year on year in sales at Starbucks stores open for at least 13 months when considered globally.

And yet thee performance was better than what the market was expecting out of the company for the third quarter.

There was a “faster-than-expected recovery in our two lead growth markets, the U.S. and China,” CEO Kevin Johnson said in a statement on Thursday.

The breakfast business of the company, which was once vied to be a rare growing segment for food chains, was a drag on the performance of the company during the quarter because of disruptions to people’s morning commutes due to the pandemic restrictions and closed offices. And coffee sellers like Starbucks and Dunkin have suffered because so many people have been staying home for their breakfast and morning coffee.

But Johnson said that people are starting to return to the stores.

In a sign of improvement, there was only about a 4 per cent decline in comparable store sales in September. Johnson said that as soon as the company had started to reopen its stroes following months of closure because of the pandemic, people started to come back to the stores. And there was growth in sales reported from Starbucks’ suburban locations and drive-thru restaurants, even though thee overall sales dropped in the recently completed third quarter.

Johnson said that a boost from its pumpkin-flavored drinks also benefited the company and noted that the Pumpkin Spice Latte was being outsold by the company’s Pumpkin Cream Cold Brew.

Dunkin’, which reported its third-quarter financial results on Thursday morning, also said that its sales have been improving. Its same-store sales ticked up .9% for the quarter.

(Adapted from CNN.com)

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