Starbucks: Reports Q4 and Full Year Fiscal 2022 Results

Seattle / WA. (sc) Starbucks Corporation reported financial results for its 13-week fiscal fourth quarter and 52-week fiscal year ended October 02, 2022. The comparable prior-year periods in 2021 included 14- and 53-weeks. GAAP results in 2022 and 2021 include items that are excluded from non-GAAP results.

Q4 Fiscal 2022 Highlights

• Global comparable store sales increased 7 percent, driven by an 8 percent increase in average ticket
  • North America and U.S. comparable store sales increased 11 percent, driven by a 10 percent increase in average ticket and a 1 percent increase in comparable transactions
  • International comparable store sales decreased 5 percent, driven by a 5 percent decline in comparable transactions and a 1 percent decline in average ticket; China comparable store sales decreased 16 percent, driven by a 17 percent decline in comparable transactions, partially offset by a 1 percent increase in average ticket
• The company opened 763 net new stores in Q4, ending the period with 35,711 stores globally: 51 percent company-operated and 49 percent licensed
  • At the end of Q4, stores in the U.S. and China comprised 61 percent of the company’s global portfolio, with 15,878 stores in the U.S. and 6,021 stores in China
• Consolidated net revenues up 3 percent, or 11 percent on a 13-week basis, to a record USD 8.4 billion, inclusive of a 3 percent unfavorable impact from foreign currency translation
• GAAP operating margin of 14.2 percent decreased 400 basis points from 18.2 percent in the prior year, primarily driven by investments and growth in labor including enhanced store partner wages as well as increased spend on new partner training, inflationary pressures, coupled with sales deleverage related to Covid-19 restrictions in China, partially offset by strategic pricing, primarily in North America and sales leverage across markets outside of China
  • Non-GAAP operating margin of 15.1 percent decreased from 19.5 percent in the prior year, or 18.9 percent on a 13-week basis
• GAAP earnings per share of USD 0.76, down from USD 1.49 in the prior year
  • Non-GAAP earnings per share of USD 0.81, down from USD 0.99 in the prior year, or USD 0.89 on a 13-week basis
• Starbucks Rewards loyalty program 90-day active members in the U.S. increased to 28.7 million, up 16 percent year-over-year

Full Year Fiscal 2022 Highlights

• Global comparable store sales increased 8 percent, driven by a 5 percent increase in average ticket and a 2 percent increase in comparable transactions
  • North America comparable store sales increased 12 percent, driven by a 7 percent increase in average ticket and a 5 percent increase in comparable transactions; U.S. comparable store sales increased 12 percent, driven by an 8 percent increase in average ticket and a 4 percent increase in comparable transactions
  • International comparable store sales decreased 9 percent, driven by a 5 percent decline in comparable transactions and a 4 percent decline in average ticket; China comparable store sales decreased 24 percent, driven by a 22 percent decline in comparable transactions and a 3 percent decline in average ticket
• Consolidated net revenues up 11 percent, or 13 percent on a 52-week basis, to a record USD 32.3 billion, inclusive of a 2 percent unfavorable impact from foreign currency translation
• GAAP operating margin of 14.3 percent decreased 250 basis points from 16.8 percent in the prior year, primarily driven by investments and growth in labor including enhanced store partner wages, inflationary pressures, as well as sales deleverage related to Covid-19 restrictions in China, partially offset by sales leverage across markets outside of China and strategic pricing, primarily in North America
  • Non-GAAP operating margin of 15.1 percent decreased from 18.0 percent in the prior year, or 17.8 percent on a 52-week basis
• GAAP earnings per share of USD 2.83, down from USD 3.54 in the prior year
  • Non-GAAP earnings per share of USD 2.96, down from USD 3.20 in the prior year, or USD 3.10 on a 52-week basis

«We saw accelerating demand for Starbucks coffee around the world in Q4 and throughout the year,» said Howard Schultz, interim chief executive officer. «And our Q4 results demonstrate early evidence of the success of our U.S. Reinvention investments. Reinvention will touch, and elevate, every aspect of our Starbucks partner, customer and store experiences, and ideally position Starbucks to deliver accelerated, sustainable, long-term, profitable growth and value creation beginning in 2023,» Schultz added.

«We are incredibly proud of our Q4 performance, and our 2023 guidance sets the stage for another year of record performance,» commented Rachel Ruggeri, chief financial officer.

For additional information please read the company’s PDF file below (139 KB):

20221104-STARBUCKS-Q4-2022.