Initiatives designed to allow Starbucks customers to order and pay ahead with their mobile devices continued to show growth as the Seattle-based coffee giant posted its Q2 2017 earnings on Thursday.
With earnings of $0.45 per share on $5.3 billion in quarterly revenue, Starbucks’ performance met investor estimates. Shares were down 3 percent in after-hours trading.
Mobile payment reached 29 percent of transactions in all U.S. stores, up 2 percent from last quarter. The Mobile Order & Pay smartphone app feature, grew to 8 percent of the quarter’s transactions, up from 7 percent in the first quarter.
CFO Scott Maw mentioned “technology innovation” being introduced in the months ahead as one factor that gives the coffee giant “great confidence in our ability to deliver strong comp sales and revenue growth in the back half of fiscal 2017.”
In last quarter’s conference call with analysts in January, then CEO Howard Schultz said the company planned to redesign new stores and existing remodels to reflect the fact that Mobile Order & Pay “is obviously going to be a significant part of the morning business.”
Thursday’s earnings report was the first for the company under new CEO Kevin Johnson.