When Starbucks introduced its pumpkin-based menu last year, foot traffic at Starbucks increased by 11.3% to 15.9% in the three days that followed.
Starbucks Corp’s stock is likely to draw investor attention during market hours on Tuesday after a report stated that the company’s seasonal pumpkin spice latte led to a jump in weekly sales.
According to a Bloomberg News report, citing an internal email sent by CEO Brian Niccol to employees, the company’s product lineup helped “deliver a record-breaking sales week” across its U.S. company-operated stores as well as in Canada.
The world’s largest coffee chain has also added a pumpkin cream cold brew, iced pumpkin cream chai, and a pecan crunch oat milk latte to its fall season offerings. Starbucks is hoping to make a turnaround amid slowing sales and rising competition in key markets.
The company has also taken several steps to boost foot traffic, such as adding more seating. According to the report, the company has also added “significantly more” staffing to stores.
Retail sentiment on Stocktwits about Starbucks was in ‘bearish’ territory at the time of writing.
When Starbucks introduced its pumpkin-based menu last year, foot traffic at Starbucks increased by 11.3% to 15.9% in the three days that followed, according to data from location analytics firm Placer.ai, as reported by MarketWatch.
The success of Starbucks has also prompted rivals such as Dunkin’ Donuts and McDonald’s to develop their own drinks infused with seasonal pumpkin spices.
Starbucks shares are down 3.7% this year, but have fallen 24% over the past six months. The firm has seen its dominance in China erode with the emergence of domestic chains such as Luckin Coffee.
According to a Bloomberg News report from last month, the company has shortlisted a dozen firms, including private equity and technology companies, to bid for a potential investment or partnership for its China operations.
The company’s turnaround efforts have garnered some support on Wall Street. The brokerage Baird noted that it has high conviction that the turnaround strategies under new leadership will transform Starbucks into a better company.
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