Starbucks reports record Q2 sales, enhances worker benefits
ABC News
Starbucks’ sales climbed to record levels in its fiscal second quarter, but its profits took a hit from climbing labor and ingredient costs
Starbucks’ sales climbed to record levels in its fiscal second quarter, but its profits took a hit from climbing labor costs.
And those costs are set to grow even higher in the coming months as Starbucks introduces new pay raises and other benefits to improve its employee experience —— and head off a growing unionization movement.
The Seattle coffee company —— which welcomed back former CEO Howard Schultz last month as its interim leader —— said revenue rose 15% to a record $7.6 billion in its 13-week quarter, which ended April 3. That was in line with Wall Street’s estimates, according to analysts polled by FactSet.
But net earnings rose just 2% to $674 million. Starbucks’ adjusted earnings of 59 cents per share fell short of analysts’ forecast of 60 cents.
