Starbucks August Sales Up 8% Amid Brisk Summer Drinks Sales
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Starbucks Corp. (SBUX), the world's largest coffee-shop chain, Wednesday said sales at stores open at least a year rose 8 percent in August, the first time growth fell below double-digits in nine months.
Ongoing demand for a new line of summer drinks, including an ice-blended "light" version of the company's popular "Frappuccino" (search) coffee drink, helped lift revenue to $418 million for the four weeks ended Aug. 22, up 25 percent from the same period a year earlier.
Starbucks, which is preparing to raise coffee prices beginning Oct. 4, has been posting double-digit gains in same-store sales since November of last year. But Chairman Howard Schultz said that growth was above expectations.
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"We are very pleased with our strong monthly results during August, which again exceeded the Company's longer-term targets for both revenue and comparable store sales growth," Schultz said in a statement.
The number of Starbucks stores worldwide increased to 8,337 in August, a net gain of 90 stores. The total includes 5,945 U.S. coffee shops and 2,392 international units.
The same-store sales increase exceeded the Seattle company's projection for monthly increases of 3 percent to 7 percent. Starbucks has said sales were likely to top that range over the near term.
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Starbucks launched a new version of its popular Frappuccino beverages this summer to tap into the growing popularity of reduced-calorie and reduced-fat menu choices for Americans.
New versions of its ice-blended drinks were also introduced in the United States, such as Strawberries and Creme, Java Chip and Vanilla Bean.