As Starbucks signals the start of warmer weather by rolling out its summer menu Tuesday, investors can expect sales to heat up as customers clamor for its chilled drinks.
Even in the chilly winter months, Starbucks' sales grow. So the company's strategy is focused on its innovation on cold options, like cold foam. Another chilled beverage innovation is Nitro Cold Brew. stores as Starbucks targets nationwide by the end of the year.
In his second quarter, the company reported sales at stores open at least 12 months rose 3%, beating Wall Street's estimates of 2.9%. Growth Starbucks and 3% increase in average customer ticket. Nearly half of the ticket growth came from customers trading up to drinks like the Cloud Macchiato.
Additionally, cold drinks are attracted by customers in stores all day long, the way to the busy morning rush. Afternoon performance during the last quarter was best in three years.
"We have seen when we introduce more of our cold beverage innovation, it's improving afternoons and our non-[Starbucks Rewards] members tend to shop with us in the afternoons, "COO Roz Brewer said on Thursday.
But, one cold option was getting less love. Starbucks has been moving away from limited-time Frappuccinos. The last one to make a noticeable impact on sales was the Unicorn Frappuccino, which was introduced in April 2017. This year's summer menu is bringing back three popular versions of the blended drink without introducing any new Frappuccino options.
"We're learning that it's an 'or'," Starbucks COO Roz Brewer said in an interview, adding that Frappuccinos will always stay on its menu.
Crispy Grilled Cheese Sandwich, Baja Black Bean Veggie Wrap and Frosted Donut Cake Pop for the summer.
Here's its summer drink line-up:
Starbucks Dragon Drink
New Summer Offering Starbucks' Mango Dragonfruit Refresher with Coconut Milk for Fruity and Creamy Beverage. Like the Unicorn Frappuccino, this option is designed for Instagram. Dragonfruit sourced from Vietnam gives it a bright pink color.
Cold Brew with Cold Cream
Starbucks Cold Brew wth salted cream foam.
The latest addition to Starbucks' line-up of cold brew features a hint of caramel topped with its Cold Foam frothy. The beverage is a year-round addition to the menu as Starbucks tries to make customers look for healthier options with cold foam that's light on the tongue and on calories.
Starbucks S'mores Frappuccino
Last summer, Starbucks customers who did not bring back the S'mores Frappuccino. After reading their complaints on social media, the coffee chain is bringing back this season – and it doesn't sound like Starbucks will make that mistake again. Brewer said that the blended drink was the summer version of the pumpkin spice latte and the popular way to the new season.
Mocha Cookie Crumble Frappuccino
Starbucks Mocha Cookie Crumble Frappuccino
Another summer favorite is also returning. The Mocha Cookie Crumble Frappuccino was first introduced in 2012. The blended drink is made with vanilla syrup, chocolate-flavored whipped cream and chocolate cookie crumbles.
Caramel Ribbon Crunch Frappuccino
Starbucks Caramel Ribbon Crunch Frappuccino
Starbucks round out of its limited-time Frappuccino offer with a version that incorporates caramel syrup, dark caramel sauce, caramel drizzle and crunchy caramel sugar topping.