Starbucks stories document income, pushed largely by Gen Z’s love of iced drinks

Customers flocking to Starbucks for Pineapple Passionfruit soft drinks and Iced Shaken Espresso boosted the coffee giant’s revenue to a record $8.2 billion in the latest quarter. USD, the company said on Tuesday.

And while McDonald’s and other restaurants and food companies that have reported earnings in the past few weeks have seen customers start to slow spending or trade up to cheaper items on their menus, Starbucks executives said its customers, particularly Gen Z — has shown no signs of cutting back on her Iced Cinnamon Dolce Latte anytime soon.

Howard Schultz, Starbucks founder and interim CEO, said the cold drinks, which accounted for 75 percent of beverage sales in the quarter, were a favorite among Gen Z because young consumers like to customize and make a drink and then post photos. in social networks.

“We are in the early stages of modifying and customizing cold drinks, and that gives us a competitive advantage,” said Mr. Schultz. He predicted it would continue to be profitable as more workers returned to their offices and picked up their morning coffee on the way.

However, increased costs related to higher raw material prices and wages, as well as COVID-related closures and restrictions in China, reduced Starbucks’ overall earnings. Operating income in April-June. in the quarter decreased by 13 percent to 1.3 billion. USD compared to USD 1.5 billion USD last year.

Mr. Schultz, who took over the reins of Starbucks for the third time in April, most recently from Kevin Johnson, said he and his team have spent much of the past four months visiting Starbucks stores around the world and meeting with employees. Those meetings helped shape what the company called a “reinvention” in July.

Mr. Schultz also said the company is interviewing potential CEO candidates and that he is likely to stay on “as long as necessary” to ensure a smooth start for the candidate. He said he would then move to the board of directors to “serve and assist” the next CEO.

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