Starbucks has reported an increase in global comparable store sales in its 13-week fiscal fourth quarter ending on 1 October 2023.
“We finished our fourth quarter and full fiscal year strong, delivering on the higher end of our full-year guidance,” says Starbucks CEO Laxman Narasimhan. “Our reinvention is moving ahead of schedule, fuelling revenue growth, efficiency and margin expansion.”
Store sales increased by eight per cent, driven by a four per cent increase in average ticket and a 3 per cent increase in comparable transactions.
“Notably, we continue to see the positive impact of our Reinvention on our partner and customer experiences, proof points that we can continue to create, grow and strengthen our business while creating value for all,” says Narasimhan.
North American and US comparable store sales increased by eight per cent, while both international and Chinese comparable store sales increased by five per cent.
Starbucks opened 816 net new stores in Q4, ending the period with 38,038 stores worldwide, with 52 per cent company-operated and 48 per cent licensed.
“As we enter the current year, in the face of macro uncertainty, we remain confident in the momentum throughout our business and headroom globally,” Narasimhan says.
At the end of the quarter, the US and China comprised of 61 per cent of the company’s global portfolio, with 16,352 and 6806 stores in US and China respectively.
Consolidated net revenues increased by 11 per cent to a record US$9.4 billion, while GAAP operating margin of 18.2 per cent increased from 14.2 per cent in the prior year.
“Our strong full fiscal year 2023 performance demonstrated our durable long-term growth and Reinvention plan execution,” says Starbucks CFO Rachel Ruggeri.
“We are proud that our full fiscal year 2024 guidance will be grounded on a balance of both revenue growth and margin expansion.”
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