Starbucks Corporation (NASDAQ: SBUX) stock rose over 5.7% in the pre-market session of July 29th, 2020 (Source: Google finance) post better than expected third quarter of 2020 performance. The group reported that their recovery from the ongoing pandemic impact has been improving during the third quarter of 2020. They exited the quarter with 96% of stores open, which is an improvement from 44% since the beginning of the quarter.
Weekly U.S. comps has been improving from minus 65% in mid-April up to minus 16% as they exited in the third quarter of 2020. At the comps of the 3,100 U.S. stores that remained open throughout the entire quarter, these stores improved sequentially from minus 14% comp in May to minus 1% in June to a positive 2% comp for July month-to-date. The firm also witnessed a rising number of customers who downloaded the Starbucks App and joined Starbucks Rewards, totaling 3 million in the quarter and a rise of 17% as compared to the second quarter of 2020. Starbucks Rewards as a percentage of tender in Q3, increased 4 percentage points from a year ago. Customer usage of mobile ordering rose to 22% of total transactions, which is a rise of 6 percentage points from a year ago. Mobile order sales mix reached 23% of sales during the third quarter of 2020 with 12% coming from delivery and 11% from mobile order-and-pay, which is above the mid-teens levels. During the third quarter, the 90-day active members rose 25% over Q2 to 9.9 million, representing 9% growth over the prior year, driven by China sales recovery.
On the financial performance, the Global comparable store sales fell 40% during the quarter due to a 51% fall in comparable transactions, while Americas comparable store sales lost 41%, on the back of a 53% decrease in comparable transactions, which partially offset a 27% increase in average ticket. The U.S. comparable store sales lost 40%, with comparable transactions declining 52%, partially offset by a 25% increase in average ticket. International comparable store sales falling 37%, while China comparable store sales losing 19%.