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Fri 28th Apr 2017 - Starbucks reports like-for-likes up 3% in latest quarter
Starbucks reports like-for-likes up 3% in latest quarter: Starbucks has reported global like-for-like sales increased by 3% in the 13 weeks to 2 April 2017 comprised of a 3% increase in the Americas, a 7% increase in China and 1% decrease in EMEA. US like-for-like sales increased 3% comprised of a 4% increase in average ticket and a 2% decrease in transactions. Adjusting for the estimated impact of order consolidation related to the new Starbucks Rewards loyalty programme, average ticket grew 3% with transactions flat to prior year. The company had record consolidated net revenues of $5.3bn, growing 6% on the prior year. Record quarter two consolidated operating margin expanded 40 basis points to 17.7%. Starbucks Card transactions represented 36% of US company-operated transactions. Active membership in Starbucks Rewards grew 11% year-on-year to 13.3 million members in the US. Mobile Order and Pay represented 8% of US company-operated transactions in the quarter. Mobile payment reached 29% of US company-operated transactions. The company opened 427 net stores in the quarter, bringing total stores to 26,161 in 75 countries worldwide. “With our US business accelerating throughout the quarter and strong performance in China, we are poised to deliver strong revenue growth in the second half and into the future,” said president and chief executive Kevin Johnson. “Our success in opening over 2,000 stores around the world annually, delivering record average unit volume and profit, despite a very difficult period for many brick-and-mortar retailers, is a testament to the 330,000 partners who proudly wear the green apron.” Chief financial officer Scott Maw added: “Starbucks US comparable sales accelerated sequentially through the quarter – culminating with a 4% US comparable in March -and we’re seeing further acceleration into April. Investments we are making to increase throughput and further premiumise the Starbucks brand are paying off. And increased capacity combined with accelerating momentum and the beverage, food and technology innovation we will be introducing in the months ahead gives us great confidence in our ability to deliver strong comparable sales and revenue growth in the back half of fiscal 2017.” Executive chairman Howard Schultz said: “Starbucks Roasteries under design or construction in the iconic, global cities of Shanghai, New York, Tokyo, Milan and Chicago will join our Seattle Roastery in delivering an immersive, ultra-premium, coffee-forward experience like none other anywhere in the world – further elevating the Starbucks brand, enhancing our customer experience and extending our global leadership around all-things-coffee. Together our Roasteries, Reserve stores and Reserve bars will broaden – and deepen – the enduring emotional connection that exists between our customers and the Starbucks brand everywhere.” Net revenues for the EMEA segment were $231.7m in the second quarter of FY17, a 14% decrease versus the second quarter of FY16. The decrease was primarily driven by the absence of revenue related to the sale of the Germany retail operations in the third quarter of FY16 as part of the ongoing shift to more licensed stores in the region as well as unfavourable foreign currency translation. Partially offsetting these decreases were incremental revenues from the opening of 304 net new licensed stores over the past 12 months. Operating income was up slightly to $27.7m compared with $27.6m the previous year. Operating margin expanded 170 basis points to 12.0% primarily due to sales leverage driven by the shift in the portfolio towards more licensed stores, primarily related to the sale of our Germany retail operations in Q3 FY16. Partially offsetting the margin expansion was unfavourable foreign currency exchange and sales deleverage in certain company-operated stores.

Just Eat executive chairman takes leave of absence: Just Eat, the global marketplace for online food delivery, has announced executive chairman Dr John Hughes is taking a leave of absence from the company to undergo treatment for a medical condition. The company stated: “During his period of absence, chief financial officer Paul Harrison will undertake John’s executive duties as interim chief executive officer. Andrew Griffith, currently senior independent director, will act as non-executive chairman for this interim period and, with the board, will complete the search for a permanent chief executive officer. Hughes will remain a non-executive director of the company. The board and management team wish John a swift and full recovery, and look forward to his return.”

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