Starbucks has reported a record US$9.2 billion in revenue during the company’s Q3 fiscal quarter for 2023.
“Our strong third quarter results point to all-around momentum in the business, and reflect the significant progress we are making against our Reinvention Plan,” says Starbucks CEO Laxman Narasimhan. “Our results were also amplified by the distinctive competitive advantages that set us apart in the market.”
The record net revenue was a 12 per cent increase compared to Q3 2022. Comparable store sales increased 10 per cent globally, including 7 per cent in North America and 24 per cent internationally.
“Starbucks is an iconic, durable brand and I am confident in the multiple paths available for the company to drive significant growth and margin improvement, which position us well to create outsized long-term shareholder value,” Narasimhan says.
Starbucks also opened 588 new stores in Q3, ending the period with 37,222 total. Stores in the US and China compromised 61 per cent of the company’s global portfolio, with 16,144 and 6480 in each country respectively. Fifty-one per cent of the total global stores are company-operated, while the remaining 49 per cent are licensed.
“I am pleased with our third quarter performance, which beat our expectations, including our International segment,” says Starbucks CFO Rachel Ruggeri. “Our performance was bolstered by the progress we are making against our strategies, specifically our Reinvention Plan, and its unfolding into tangible financial results, as we delivered earnings growth of 19 per cent well above our revenue growth of 12 per cent.”
Net revenue for the North America segment grew 11 per cent compared to Q3 2022, reaching a total of US$6.7 billion, primarily driven by a 7 per cent increase in company-operated comparable store sales.
The company will discuss fiscal year 2023 financial targets in a conference call in August.
The full Q3 2023 report can be found at www.starbucks.com