May the price of Starbucks coffee go up? Starbucks' fourth quarter earnings are up, shares are up, salad

Starbucks' earnings rose in the fourth quarter.

According to Starbucks' financial results for the third quarter of 2018, its global same-store sales grew by only 1%, while same-store sales in China fell by 2%. Operating margins in China and the Asia-Pacific region fell 7.6%, the first decline in nine years. In pre-market trading on Friday, Starbucks beat analysts' expectations for fourth-quarter results for fiscal 2018. In the fourth quarter, Starbucks' global same-store sales rose 3% year-on-year, mainly driven by a 4% increase in customer unit prices, while same-store sales in China grew by only 1%, compared with 8% in the same period last year.

After Starbucks' European operations are streamlined and restructured, the group will focus more on breaking through the growth of the US and Chinese markets in the future.

Starbucks announced plans to open 2100 new stores worldwide in 2019 when it released its fourth-quarter earnings report on Thursday. Kevin Johnson, CEO of Starbucks, said the company would "focus on the long-term growth of the Chinese and US markets in 2019." In May, Starbucks announced plans to open 3000 new stores on Chinese mainland in the next few years.

Alibaba and Starbucks reached a new comprehensive retail strategic cooperation in August 2018. At the analyst meeting after Starbucks announced its results on the same day, Kevin Johnson, CEO of Starbucks, and John Culver, president of International and Channel Development Group, repeatedly mentioned the contribution of the Chinese market and the results of cooperation with Alibaba.

Culver commented, "this is not just about takeout, but an omni-directional partnership covering the entire ecosystem, including ele.me, Hema, Taobao, Tmall and Alipay, working together to create a new digital experience for customers."

Kevin Johnson, CEO of Starbucks, also said at the analyst meeting, "even though Starbucks has extended its external business a little because of convenience, it still does it in a way that enhances the brand and store experience, and the takeout partnership with ele.me has been fully integrated into in-store operation and can provide a great experience."

Starbucks in the United States, up 10-20 cents

Starbucks announced that it has raised the price of ordinary freshly brewed coffee sold in most of its US stores by 10-20 cents. Now, after the price increase, Starbucks'12-ounce "medium" coffee has now risen to $1.95-$2.15. At the same time, apart from coffee, the prices of other items in Starbucks stores, such as popular lattes, cappuccinos, cold drinks, iced coffee and other specialty drinks, remain unchanged. This is the third time that Starbucks has raised its price in the United States in three years.

The price increase of Starbucks in recent years goes like this--

In July 2015, large and small brewed coffee will rise by 10 cents each in most parts of the United States.

In June 2014, the prices of most drinks in North America increased by 5-20 cents.

In 2012, in the North American + Chinese market, some brewed coffee rose 1-2 yuan.

Starting from June 16, 2016, Chinese mainland will raise the price of some drinks in Starbucks stores by 1 to 2 yuan.

In February 2018, the prices of most drinks in North America increased by 10-20 cents.

In the past year, Starbucks has raised the price of its products by 1%, by 2%. At the time, Starbucks pointed out that the move was aimed at keeping the company abreast of industry changes and domestic inflation.

"Starbucks adjusts prices according to the specific conditions of products and markets, and periodic price assessments allow us to strike a balance between profitable demand, providing quality goods to loyal customers and attracting new customers," Starbucks wrote. " Although Starbucks gave what it thought was a good reason, American consumers did not "welcome" the price increase, instead complaining.

Starbucks shares rose 9%

The rise in North American prices helped Starbucks achieve its strongest quarterly sales growth in more than a year. Starbucks shares rose 9% in after-hours trading on Thursday after the company reported a 4% increase in same-store sales in the key U.S. domestic market in the fourth quarter, exceeding market expectations of 2%. 3%, which also contributed to the growth of global same-store sales in that quarter.

Starbucks stops using plastic straws, netizens: just don't raise the price.

In China, the price of Starbucks salad has risen from 27 yuan in September to 48 yuan. From November 1, McDonald's will use "straw-free cup lid" in 10 pilot restaurants in Beijing without offering straws.

Starbucks also announced in July that plastic straws would be banned at all stores around the world by 2020. Stainless steel straws are on their way to McDonald's and Starbucks, two years since the last price increase, and it is possible for drinks to rise.

Is the salary going up?