Tapitha working her nitro magic FluxFactory/E+ via GettyImages
Meet the old crew for a Cold Brew... People are meeting for coffee again, lines are back at Starbucks, and Linda still can't decide if she wants the egg white bite or the cake pop. Starbucks had its best third quarter revenue ever, whipping up $7.5B in sales — up a frothy 78% from last year. And same-store sales jumped 10% from even pre-pandemic levels.
Too cold to handle... One theme stood out to us from Starbs' earnings: iced drinks are hot commodities. Cold drinks accounted for nearly three-quarters of total sales, up 10% from two years ago. Now, Starbucks is doubling down on the chill factor, since cold concoctions tend to be more profitable than plain old cups of Joe:
Daily habits are a gold mine... Starbs already owns one of the most reliable routines: the morning java run. Rewards members accounted for more than half of Starbucks' US sales last quarter. Now Starbucks is focused on milking more $$$ out of routines with premium upgrades. First, it was fancy breakfast sandwiches (shoutout Turkey Bacon & Egg White). Then, it was alt-milk drinks featuring Oatly. Decked-out cold drinks, like the Mango Dragonfruit Refresher, are the latest premium push.