SBUX Starbucks Corporation

By Julie Jargon 

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (March 22, 2018).

Starbucks Corp. wants to spread its mobile-ordering app beyond loyal customers to stem slowing U.S. sales.

Executives told shareholders at the coffee giant's annual meeting Wednesday that the app would be available to all customers, not just the loyalty program members who use it now.

Chief Operating Officer Roz Brewer told shareholders in Seattle that the app helps Starbucks target products to customers more effectively. That could be an important tool as the chain also adds more lunch items and cold drinks to its menu to draw in more customers after the morning coffee rush.

"Cold isn't just for summer anymore," Ms. Brewer said of a category that she said now represents half of Starbucks' beverage sales.

Starbucks in January reported a 2% rise in same-store sales in the U.S. and globally in its fiscal first quarter, short of analyst expectations.

Starbucks Chairman Howard Schultz asked investors Wednesday to be patient with the company's share price, which has been largely flat for the past year as the S&P 500 has risen 16%.

"We are in this for the long term," Mr. Schultz said.

The chain is focusing on expansion in China, which it said will one day overtake the U.S. as its largest market. Starbucks wants to open more than 5,000 stores in China by 2021. The company is also building high-end cafes around the world under the "Reserve" brand to attract customers willing to pay more for premium coffee and pastries.

In the U.S., Starbucks wants to require customers who use its in-store wi-fi to enter their email address in the first store where they get connected. Thereafter the company's software would remember their device and connect automatically. That would give Starbucks new email addresses for non-rewards members that Starbucks could target with promotions.

The company is also rolling out a new Mercato menu of freshly-made sandwiches and salads to more than 1,000 stores by the end of the year. Ms. Brewer said Starbucks aims to double food sales by 2021.

Starbucks also plans to expand its line of caffeinated fruit juices, known as Starbucks Refreshers, and its nitro cold-brew drinks, among others.

(END) Dow Jones Newswires

March 22, 2018 02:47 ET (06:47 GMT)

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