- Execs with Starbucks (NASDAQ:SBUX) highlighted the strong early returns for the company's Mobile Order & Pay program during yesterday's earnings call.
- CEO Howard Schultz said faster lines are leading to an increase in traffic and throughout (efficiency) at test stores.
- Mobile Order & Pay is being rolled out more broadly and in international markets in the coming months.
- Schultz also said Starbucks is convinced there is "huge" demand for home and office delivery service. Tests in Seattle and NYC begin later this year.
- Schultz strayed a little bit to talk about one of his favorite topics - the slow demise of brick and mortar retail. In referring to the transition of Starbucks into mobile commerce he said, "we've identified a number of companies in unique verticals that we think sequentially can be part of this external ecosystem." He noted regional and national retailers have called to inquire about the Starbucks mobile ecosystem and currency (rewards). Those potential partnerships could rock retail.
- Also of note, Starbucks disclosed 11% comp growth in China consisting of a 10% jump in transactions.
- Investment firm updates: Wedbush PT to $70, BAML PT to $68, RBC Capital PT to $64.
- SBUX +4.31% premarket to $59.00.
- Starbucks earnings call
- Previously: Starbucks powered by strong traffic; new buyback, and PepsiCo deal on tap (Jul. 23 2015)