Starbucks’ performance is still on a long road to recovery, especially in its U.S. stores. The company reported in its earnings for the first quarter ended Dec. 27, 2020 that U.S. same-store sales had dropped 5% (an improvement from last quarter’s -9% same-store sales numbers). The company also reported positive same-store sales in China of 5% for the first time since the pandemic began. Starbucks CEO Kevin Johnson said that the company remains on track for a full recovery of their U.S.
“This journey has not been linear and because we have operationalized our ability to monitor events in real-time and adapt to the changing conditions store-by-store, our recovery continues to track slightly ahead of our expectations,” Johnson said during Tuesday’s earnings call.
Similar to previous quarters during the pandemic, Starbucks has seen their traffic falter — with transactions down 21% — while average ticket has grown as more customers order food and beverages for their entire family instead of just as a pick-me-up on the way to work. The 19% ticket growth was driven by “a combination of increased beverage attachment, premium beverage mix, increased customization and upsizing, and an all-time high food attachment,” Johnson said yesterday.