On November 2, 2023, Starbucks Corp (SBUX, Financial) reported its financial results for the 13-week fiscal fourth quarter ended October 1, 2023. The company saw an 11% increase in Q4 consolidated net revenues, reaching a record $9.4 billion. The Q4 GAAP EPS was $1.06, driven by strong global performance and reinvention execution. The company's active U.S. Starbucks® Rewards Membership reached 32.6 million, marking a 14% increase over the prior year.
Financial Highlights
Starbucks Corp (SBUX, Financial) reported an 8% increase in global comparable store sales, driven by a 4% increase in average ticket and 3% increase in comparable transactions. The company opened 816 net new stores in Q4, ending the period with a record 38,038 stores globally. The GAAP operating margin of 18.2% increased from 14.2% in the prior year, primarily driven by in-store operational efficiencies, sales leverage, and pricing. The GAAP earnings per share of $1.06 grew 39% over the prior year.
CEO's Commentary
We finished our fourth quarter and full fiscal year strong, delivering on the higher end of our full-year guidance. Our Reinvention is moving ahead of schedule, fueling revenue growth, efficiency and margin expansion," commented Laxman Narasimhan, chief executive officer. "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. As we enter the current year, in the face of macro uncertainty, we remain confident in the momentum throughout our business and headroom globally. We expect sustained momentum throughout the company for years to come,” Narasimhan added.
Financial Tables
Starbucks Corp (SBUX, Financial) reported net revenues for the North America segment grew 12% over Q4 FY22 to $6.9 billion in Q4 FY23, primarily driven by an 8% increase in comparable store sales. The International segment saw an 11% growth over Q4 FY22 to $2.0 billion in Q4 FY23, primarily driven by net new company-operated store growth of 12% over the past 12 months.
The Channel Development segment of $486.1 million in Q4 FY23 was relatively flat to Q4 FY22, driven by an increase in revenue in the Global Coffee Alliance partially offset by a decrease in global ready-to-drink revenue.
Looking Forward
The company will discuss fiscal year 2024 financial targets during its Q4 FY23 and full year earnings conference call. The company will also host a Reinvention update and holiday launch later today. These items can be accessed on the company's Investor Relations website during and after the call and event.
Explore the complete 8-K earnings release (here) from Starbucks Corp for further details.
