Starbucks Corp. (SBUX) expects its sales to rise in 2021. A strong second-quarter report increased Starbucks’ full-year outlook. Despite ongoing vaccinations for COVID-19, Starbucks is experiencing a positive trend. Since last year, the company has strengthened its segment of mobile sales, impacting the overall growth of the coffee chain.
Sales for comparable Starbucks stores in the US increased 9 % from the same period last year. One factor contributing to the growth was a new loyalty program offering Starbucks Rewards members the opportunity to earn rewards without downloading their accounts first. This resulted in a 19 % increase in Starbucks Rewards active members, up to 22.9 million.
In addition, only more than a quarter of US sales came from mobile orders, as Starbucks Rewards members accounted for 52 % of sales. The number is 18% higher than 12 months ago. Significantly, the rise of mobile ordering will enable Starbucks to increase profits by allowing consumers to make order decisions more quickly. It can also improve customer satisfaction by reducing queuing times, as the employee can spend their time preparing the drink. Customers who are more satisfied with their shopping experience are more inclined to return.
Before this announcement, Starbucks had anticipated revenues for 2021 to be between $ 28 billion and $ 29 billion. These expectations are now $28.5-29.3 billion. Profit margins have also been increased to 15 – 16 %, and per share has been increased from $2.65 to $2.75.
Starbucks Corporation (SBUX) closed the last trading day -0.55% down at $113.48. The volume traded was 4.68 million shares, which is lower than the average volume of the previous three months of 6.43 million. During the trading session, the stock fluctuated between $113.16 and $114.88. The company received earnings of $0.83 per share. Stocks of Starbucks have gained 0.96% of their value in the previous five sessions and moved 0.29% over the past month, but have gained 6.08% concerning the year-to-date as well. Over the past 50 days, the stock has moved an average of $110.87, which is above its 200-day moving average of $97.50. Furthermore, the stock trades at an RSI of 49.45.