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Starbucks (SBUX) Schultz: Newest Stores are Most Profitable; Mobile Has Been Key

June 28, 2013 2:58 PM EDT Send to a Friend
Starbucks (Nasdaq: SBUX) shares are modestly higher on today's session following CEO Howard Schultz speaking with stock sage Jim Cramer on Thursday night.

Schultz noted that Starbucks was built "from the inside out." The company balances profits against the needs of its employees, which is one of the reasons it offers health insurance to any employee who works over 20 hours per week.

Aiming to be one of the most respected brands in the world, Schultz also said that Starbucks' newest locations are also the most-profitable ones.

Innovation is also the name of the game at Starbucks. Schultz said the company invested heavily in mobile, now processing over 4.5 million mobile transactions per week. The convenience and value of mobile keep customers happy and, more importantly, returning.

On the recent company-wide 1 percent increase in prices, Schultz said transparency was key for Starbucks as well. He noted that coffee only accounted for 11 percent of costs, while dairy, health care, and labor all saw a recent increase as well.

Shares of Starbucks are up 0.3 percent Friday.




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