Starbucks Corporation (SBUX)

[mick]

Starbucks says new rewards system will lead to higher profit

Starbucks (SBUX -5.6%) CEO Howard Schultz made it clear during the post-earnings conference call that the company's rewards program is still vibrant even with the new dollar-based system in play.
One million members were added during FQ2 to put the number of active My Starbucks Rewards members over 12M. Schultz noted that even last week after the loyalty change became effective, another 280K Reward members signed on.
During the call, CFO Scott Maw was asked about the impact of the rewards switch on financial results. Maw responded that there was no upfront tech investment and that the new program will be profitable immediately and build over time.
Starbucks earnings call transcript
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