Strong outlet growth in the US and China pushes the coffee giant’s global store count above 38,000, with robust sales in North America generating record fourth quarter revenues
A Starbucks store in Shanghai, China | Photo credit: Yi Wei
Starbucks has reported record fourth quarter revenues following strong sales across North America and robust outlet growth internationally.
The Seattle-based coffee chain achieved 11% group revenue growth to reach $9.4bn in the three months ended 1 October 2023 – 2% higher than the third quarter. Record fourth quarter sales pushed Starbucks’ full-year revenues to $36bn, an 11% year-on-year increase.
Starbucks opened 816 net new stores in its fourth quarter to reach 38,038 outlets – 52% of which company-operated – across 86 markets globally.
Fourth quarter sales in the US grew 13% year-on-year to $6.4bn, driven by a 6% increase in average ticket and 3% net outlet growth. Starbucks opened 208 net new stores in the US during the period to reach 16,352 in its native market.
Sales in Starbucks’ key growth market, China, increased 8% in the quarter to $841m – contributing strongly to the coffee chain’s $1.98bn international segment revenue.
Starbucks opened 326 net new stores in China during the quarter to reach 6,806. The business is seeking to reach 9,000 stores across the country by 2025.
The US and China currently comprise 61% of Starbucks’ global portfolio and accounted for 65% of the coffee chain’s total fourth quarter outlet growth.
In September 2023, Starbucks opened its 20,000th store outside of North America in the UK, marking its 25th anniversary in the market.
“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. As we enter the current year, in the face of macro uncertainty, we remain confident in the momentum throughout our business and headroom globally,” said CEO Laxman Narasimhan.
Starbucks also reported ‘relatively flat’ fourth quarter sales in its Channel Development segment, which sells branded packaged coffee, tea and ready-to-drink (RTD) beverages outside of company-operated and licensed stores. Segment sales increased $2.5m year-on-year to $486m, driven by increased revenue in its Global Coffee Alliance partnership with Nestlé, but partially offset by a fall in global RTD revenue.