Starbucks Says Over 10% of Sales Are Done Digitally

Starbucks

StarbucksIt appears fancy coffee isn’t the only thing creating long lines at Starbucks. CEO Howard Schultz says Starbucks is selling more food with its new menu, and that Americans are lured by its digital capabilities–like paying with their mobile phones. The result: Starbucks’s best ever fiscal third quarter earnings, with profits up 25% and key sales trends in the U.S. rising 9%–all in the face of a supposedly dismal economy. Needless to say, investors are impressed. Shares are up 7% at $72.96, trading at about 35 times its earnings. For comparison, McDonald’s stock trades at roughly 18 times its earnings. Starbucks has been on a mission to “reinvent” its food menu. The assumption is that its loyal fans are willing to pay top-dollar for a cup of coffee, so they must be able to afford a snack or lunch on the side. Food contributed about 22% of Starbucks’s same-store sales growth in the U.S. in the latest quarter, with the help of new items like zesty chicken and black bean salad bowls.

Read the full story at the Wall Street Journal.