Despite fears that the market may be nearing a recession, Starbucks CEO Kevin Johnson told CNBC Monday that his clients are telling a different story.
The coffee chain is more in tune with its customers thanks to investment More than 17 million active users who regularly use Starbucks' mobile app, Starbucks loyalty program, which accounts for 42% of sales, said Johnson said.
"We have not seen any signs of slowing in the US, but we know that these things happen in cycles," he said, and sat down with "Jim Cramer" from "Mad Money," but right now we're shooting Allen Cylinders and [the] consumers seem to be fine. "
Starbucks generated $ 6.8 billion in revenue last year, up more than 8% from the same period last year, with US sales rising 7% in the same stores and 6% in China as a result Trading tensions between the world's largest economies were booming, with management raising its full-year guidance to $ 26.4 billion.
Johnson, head of the Seattle-based coffee franchise since 201
In the field of beverage innovation, Starbucks announced that it will make its debut on Tuesday as part of its autumn menu. According to CNBC, it's the first pumpkin beverage of the coffee maker since the pumpkin spice slab was launched nearly two decades ago.
Coffee drinkers drink the hot drink in the morning to prepare for the working day, brewing in cold water for 24 hours, have opened up new possibilities after noon. Starbucks was able to project a shift to cold drinks, and noted that this was performing well, especially for millennials, he said. The CEO expects that his cold nitrograins, containing nitrogen to make them sweeter and creamier, will be available in all coffee shops by the end of September.
"The combination of our cold brew – Nitro Cold Brew, our soft drinks – has unlocked the part of the afternoon," said Johnson. "In fact, just over half of our drinks are cold drinks."
Johnson has also undertaken to look beyond the profits he makes to investors in determining the value of Starbucks. Together with nearly 200 other CEOs, he signed a Business Roundtable Pact that redefined the "purpose of a business" and included customers, employees, suppliers, and society as stakeholders, "a purpose that goes far beyond the pursuit of profit."
"That means investing and looking after our partners, whether it's health or studying," he said. "We have just … exceeded the goal of hiring 25,000 veterans or military spouses, surpassing that goal 3 years earlier and now employing 5,000 veterans a year."
add up to what we do to really pursue a purpose beyond the pursuit of profit.
Starbucks shares have been trading sideways for about three years, rising almost 50% this year, with the stock climbing 1.9% to hit $ 96.50 on Monday.