Starbucks continues to see increased usage of its mobile products as the coffee giant reported its quarterly earnings on Thursday.
The company posted $5.66 billion in revenue for its third quarter, which is up 8 percent from last year but missed analyst expectations of $5.76 billion. Its non-GAAP earnings per share of $0.55 met expectations. Same store sales (those that have been open at least one year) at its U.S. locations grew 5 percent year-over-year.
Starbucks said payments made via mobile increased to 30 percent of transactions in U.S. stores; that’s up from 29 percent in the previous quarter and 27 percent in Q1.
Mobile Order and Pay, a feature that lets customers order with their smartphone via Starbucks’ app and skip the line, accounted for 9 percent of transactions. That’s up from 8 percent in the previous quarter, and 5 percent in the year-ago quarter.
“Starbucks leveraged food and beverage innovation, an elevated in-store experience and personalized digital connections to our customers to deliver another quarter of record financial and operating performance, despite the softness impacting our principal sectors overall,” Starbucks CEO Kevin Johnson said in a statement. “Continued focus on execution against our strategic priorities enabled us to gain share and positions us well for the future.”
Shares were volatile in after-hours trading, and were down nearly 2 percent when this story published.
The growth of Mobile Order and Pay has caused congestion issues inside stores for customers trying to pick up their coffee and food. Starbucks responded earlier this year by adding dedicated stations for mobile order-ahead customers, distinct from existing in-store registers, and giving baristas new tablets.
Starbucks also today announced that it will close all 379 of its Teavana stores. Executives said earlier this year that the underperformance was caused in part to decreasing foot traffic in malls.