Starbucks has reported consolidated net revenues of US$7.5 billion for its 13-week third fiscal quarter that ended 27 June 2021, up 78 per cent compared to the previous year.
This was mainly driven by a 73 per cent increase in global comparable store sales due to COVID-19’s unfavourable business impact in 2020, and the strength of United States operated company sales in 2021.
“Starbucks delivered record performance in the third quarter, demonstrating powerful momentum beyond recovery,” says Kevin Johnson, President and CEO of Starbucks.
“Our ability to move with speed and agility and to be out in front of shifting customer behaviours has helped further differentiate Starbucks, positioning us well for this moment.”
Starbucks opened 352 new stores in this quarter, creating three per cent year-over-year unit growth. The period ended with a record of 33,295 stores across the globe, of which 51 per cent was company operated and 49 per cent was licensed.
Stores located in the US and China comprise 62 per cent of Starbucks global portfolio as of the end of the 2021 third quarter. The US contains 15,348 stores while China now has 5135 stores.
The report found that global comparable store sales increased by 73 per cent, driven by a 75 per cent increase in comparable transactions. This was partially offset by a one per cent decrease in average ticket.
In the United States comparable store sales increased 83 per cent, driven by an 80 per cent increase in comparable transactions and a one per cent increase in average ticket.
Americas comparable store sales increased 84 per cent, driven by an 82 per cent increase in comparable transactions and a one per cent increase in average ticket.
Internationally, comparable store sales increased 41 per cent, driven by a 55 per cent increase in comparable transactions, partially offset by a 9 per cent decline in average ticket.
In China comparable store sales increased 19 per cent driven by a 30 per cent increase in transactions, partially offset by a 9 per cent decline in average ticket.
International comparable store sales saw an adverse impact of approximately 5 per cent while China’s comparable store sales saw an adverse impact of 6 per cent. According to Starbucks this is due to lapping prior-year value-added tax exemptions in China.
The GAAP operating margin increased from 16.7 per cent in 2020 to 19.9 per cent, driven by sales from businesses recovering combined with COVID-19 associated costs from 2020. Pricing in Americas was partially offset by investments in wages and benefits for store partners.
The GAAP operating margin also benefited from higher restructuring activates in 2020, primary linked to the Americas Trade Area Transformation.
The Non-GAAP operating margin was 20.5 per cent, up from -12.6 per cent in 2020. GAAP earnings per share were at US$0.97 up from a loss of US$0.58 in the previous year.
Starbucks Rewards loyalty program for 90-day active members in the US also increased to 24.2 million, up 48 per cent year-over-year.
“As the Great Human Reconnection continues to unfold, our partners are rising to the occasion, ready to meet our customers wherever they need us to be – with the right store, in the right place, at the right time,” says Johnson.
“Given the strength of our diverse portfolio and the elevated Starbucks Experience, as evidenced in our Q3 record results, we are raising our full-year financial outlook and are confident in our ability to continue to execute our ‘Growth at Scale’ agenda to unlock the full potential of the Starbucks brand.”
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