Starbucks posts strong Q2 growth as revenue hits $9.5 billion

Starbucks stock jumped in after-hours trading on Tuesday after the coffee giant posted strong second-quarter earnings.

Revenue reached $9.5 billion, a 9% increase from the same quarter last year, according to Starbucks’ quarterly earnings report.

“This quarter marked a milestone for Starbucks — and the turn in our turnaround,” Starbucks CEO Brian Niccol said in a video on the company’s website. “For the first time in more than two years, we delivered growth on both the top line and the bottom line.”

The Seattle-based coffee chain drew more customers for the second straight quarter and raised its outlook for the rest of the year.

“Global comparable sales strengthened, led by transactions. And earnings grew year over year. Put simply, more customers are getting back to Starbucks as we deliver the best of Starbucks more consistently,” Niccol said.

Starbucks says personal touch is driving customers back

Niccol attributed the rise in patrons to Green Apron Service, an initiative to make every customer visit feel personal.

“Investments in staffing and scheduling, technology, and leadership are giving our green apron partners the support they need to deliver the world’s best service,” he said.

Niccol noted the company now expects sales to rise at least 5%, up from its earlier projection.

The growth comes after Starbucks confirmed it was closing at least 28 stores in Washington in September. The company then announced in April that it would be establishing a corporate office in Nashville, and said it planned to move or hire 2,000 at the new office over the next five years.

According to several news outlets, the 2,000 employees would be more than half of Starbucks’ employees in the Seattle area. But despite the seismic move, Starbucks maintained that Seattle will remain its North American and global headquarters.

Contributing: Julia Dallas and Frank Sumrall, MyNorthwest; Aaron Granillo, KIRO Newsradio

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