Starbucks saw a significant surge in foot traffic, with consumers returning back to physical stores for their caffeine fix.
The Seattle-based coffee giant raised its full-year profit forecast after posting big gains in the quarter ending June 27. Global comparable sales growth, which in a pre-pandemic world grew in the high single digits, increased by a stunning 73 percent in the last three months thanks to improving access to vaccines and economic reopening in markets around the world.
“As the Great Human Reconnection continues to unfold, our partners are rising to the occasion, ready to meet our customers wherever they need us to be,” said Chief Executive Kevin Johnson in an earnings release.
Despite the gains, the company saw its share value fall by 3.1 percent to $122.15 in after-hours trading. The company expects its growth in the United States and the rest of the Americas to grow at a higher rate than previously forecasted, but it has lowered its sales range for other international markets.
The company expects “roughly flat” comparable sales growth in China in the upcoming quarter.
“South Korea … would not be a market for major growth in the coming years. It’s better for them to sell their stake use the capital and proceeds to invest in faster growth markets like China,” China Market Research Group analyst Shaun Rein. “Using the sale of its South Korean operations will equip it with more cash that it can deploy to China.”