Starbucks said its profit jumped 16 percent in its fiscal second quarter as its U.S. cafes attracted more visits and sold more food offerings like breakfast sandwiches.
The coffee chain said sales rose 7 percent at established locations globally, including in its flagship U.S. market.
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Scott Maw, chief financial officer for Starbucks, said the increase in the U.S. was driven primarily by higher average spending per visit. That was the result of the Seattle-based chain convincing people to buy revamped baked goods that also cost a little more, and getting them to buy more food in general.
Overall food sales in the U.S. were up 16 percent from a year ago, Maw said, while breakfast sandwich sales were up 35 percent.
The company says about a third of orders include a food item and that the figure has been ticking higher. Starbucks also said an increase in customer visits also helped push up sales.
During the quarter, the Asia region saw a 12 percent growth in sales at established locations, while the unit encompassing Europe, the Middle East and Africa rose 2 percent.
For the quarter ended March 29, Starbucks earned $494.9 million, or 33 cents per share, which was in line with expectations. A year ago, it earned $427 million, or 28 cents per share.
Revenue rose 18 percent to $4.56 billion, more than the $4.53 billion Wall Street expected.
Shares of Starbucks Corp. were up 5 percent at $51.90 in extended trading.