Starbucks CFO Rachel Ruggeri says Starbucks is on track for record sales

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Starbucks CFO Rachel Ruggeri says Starbucks is on track for record sales

Coffee lovers don't seem to be pulling back on their Venti iced cold brew with extra cold foam and two pumps of brown sugar syrup, as inflation takes a toll on Americans' wallets. According to Rachel Ruggeri, Starbucks CFO Rachel Ruggeri, it's quite the opposite.

This quarter is the highest number of customer counts we've ever seen, and the highest average weekly sales we've ever seen, Ruggeri told Yahoo Finance Live.

Starbucks reported in the third quarter of the year, surpassing expectations, with net revenues spiking 9% to a quarterly record of $8.2 billion.

More customers are connecting with the brand and they're engaging with the brand when they come into our stores. Since the pandemic, we've seen a shift in the composition of our revenue, and we're seeing higher tickets in a more modest transaction, according to Ruggeri, who said in regards to U.S. demand, where sales jumped by 9%, and an 8% increase in average ticket size offset by a 3% decline in comparable transactions.

She stated that it speaks to the demand that we're seeing, and we're incredibly encouraged by that as just a difference in how our customers are choosing to come to us.

She said we were very encouraged by the fact that we were able to overdeliver on our expectations this quarter, with increased growth from the first and second fiscal quarters.

Cold beverages and premium offerings are seen as a hot opportunity even with the fears of the Wall Street and Main Street alike. The opportunity to create more premium offerings, with the ability to personalize drinks, is what we think helps differentiate Starbucks. It allows customers to express themselves through a drink that is suited for them, and gives them the choice of a drink. Currently, 75% of beverage sales were cold, which is typical in the early summer months, up from 12% in the previous quarter.

On a call with analysts, Starbucks interim CEO Howard Schultz called cold beverages a Gen Z product for the brand, while customization options lend a competitive advantage in our ability to customize almost any beverage that customers want with speed. Follow her on Twitter at BrookeDiPalma or email her at bdipalma yahoofinance.com.