Next year, Starbucks (SBUX, Financial) will start delivering coffee and food in select markets through a new mobile order and payment app. The company will be starting with Portland in December, and offer the service nationwide sometime next year. This was announced yesterday by CEO Howard Schultz during Starbucks' earnings conference call. Schultz said the new app will intergrate seamlessly with the point of sale and store operations of the firm. The new app will allow customers to place their orders ahead of time and pick it up without having to wait in line.
“Imagine the ability to create a standing order that Starbucks delivered hot or iced to your desk daily; that’s our version of e-commerce on steroids. All this will grow Starbucks Rewards, our loyalty program that now has 8 million active members up 23% over Q4 last year and has been launched in 26 countries."
Schultz believes the beverage delivery in select markets will start sometime next year. He also believes this will improve the My Starbucks rewards progam with more benfits to grow for members and give people more reason to join.
Starbucks' Third Quarter Earnings
The firm reported a 23% increase in non-GAAP earnings of $0.74 per share. Revenue increased 10% to $4.2 billion in the third quarter and the board appoved a cash dividend of $0.32 per share, which is an increase of 23%. In 2015, Starbucks estimates it will achieve non-GAAP earnings in the range of $3.08 to $3.12, below the Wall Street consenues estimates of $3.16. The firm also expects to grow revenues about 16-18%.
