same-store sales returned to double-digit growth in October after a couple months of slower growth, the coffee chain reported Wednesday.
In the four-week period ended Oct. 31, the company's comparable-store sales grew by 11% over the same period last year. Same-store sales compare results at like outlets that have been open for 13 months or more.
Including the company's newer stores, Starbucks' overall sales grew by 25% to $453 million over the same October period.
"Fiscal 2005 is off to a great start for the company as reflected by our strong October sales results," Jim Donald, the company's
incoming CEO, said in a statement.
Starbucks' comparable-store sales grew by 8% and 7% in its
September periods, respectively. That pace over the last two months was at the high end of the company's long-term expectations of 3% to 7% same-store sales growth. But it marked a deceleration from earlier in the calendar year, when the company consistently posted same-store sales growth greater than 10%.
Donald attributed the resumption of growth in part to sales of the pumpkin spice latte, a new drink the company is offering.
But the pickup in sales growth also postdated a recent
price hike. The company last month increased the price of its average drink by 11 cents.
The company's announcement came after the bell on Wednesday. The company's stock closed regular trading up 50 cents, or 0.9%, to $53.48.