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Starbucks' Mobile App Continues to Do Big Business

The company is expected to report a 6.7 percent sales increase for the second quarter


Starbucks will report its earnings for the second fiscal quarter tomorrow, and things are looking pretty good for the coffee giant: Analysts estimate the company will report a 6.7 percent jump in same-store sales across the globe, according to the Wall Street Journal.

It's not quite the 8 percent sales jump that Starbucks reported last quarter, when it posted record sales revenues, but its business in Europe is thought to have been affected by the recent terrorist attack in Brussels and last fall's Paris attacks, both of which have hurt tourism; following last month's events in Belgium, Starbucks temporarily shuttered more than a dozen stores, and its Brussels airport location remains closed.

The company's mobile app continues to do big business: Analysts estimate that "mobile payment represented about 25% of U.S. orders in fiscal Q2, up from 21% in fiscal Q1." Customers who order via the mobile app spend an estimated three times as much as the average customer.

Starbucks implemented some controversial changes to its loyalty program last week that makes it significantly more difficult for some customers to earn free drinks; any potential effects of that won't be visible until the next quarter's earnings report, but analysts believe while it could have a negative impact on sales short-term, it will boost revenue in the long run.