SEATTLE (AP) – An alleged war on Christmas by Starbucks apparently didn’t dampen the coffee chain’s holiday sales, but the company’s outlook going forward fell short of Wall Street expectations.
The Seattle-based company says sales rose 9 percent in its flagship U.S. market and 8 percent globally during the final three months of the year. The increase at home and abroad was the result of a mix of higher customer traffic and increased spending.
Over the holidays, the company said $1.9 billion was loaded onto Starbucks gift cards. It said one in six American adults received a Starbucks gift card over the holidays, up up from one in seven a year ago, and one in eight two years ago.
The strong results came despite an online backlash from some corners when Starbucks unveiled its minimalist red cups bearing only its logo for the holidays. That was a change from past years, when the company’s holiday cups were decorated with reindeer, snowflakes and Christmas ornaments.
Starbucks has been pushing up sales by rolling out pricier drinks like the “Flat White” and more food options. It said sales of breakfast sandwiches were up 40 percent during the quarter from a year ago.