Starbucks reported record quarterly revenue of $8.2 billion
Despite inflationary pressures and ongoing tensions with a growing union, Starbucks reported major growth momentum for the third quarter ended July 3, according to an earnings release on Tuesday. Same-store sales increased 3% globally, driven by a 6% increase in average ticket, partially offset by a 3% decline in same-store transactions. Same-store sales in the United States were particularly strong, with a 9% increase in same-store sales, driven by ticket growth of 8%.
One of the most notable milestones of the quarter was Starbucks’ record quarterly revenue, which rose 8.7% to $8.2 billion, with the North American segment alone increasing revenue by 13 % to reach $6.1 billion. The Seattle-based coffee chain’s momentum was mainly driven by the United States and other markets outside of China, which fell in the third quarter due to COVID-related store closures.
“We have a clear vision of what we need to do to reinvent the business, improve the experience for our partners and customers, and drive accelerated, profitable growth around the world,” said Howard Schultz, interim CEO. , in a press release. “The third quarter results we announced today demonstrate the first progress we have made in just four months.”
In the last quarter, one of the company’s most significant changes and announcements was that Starbucks is completing the Russian exit process, following a promise to do so in the spring. All Russian Starbucks employees received a six-month severance package and help finding new businesses.
Starbucks’ net income for the third quarter of 2022 fell nearly 21%, from $1.2 billion or 97 cents per share to $913 million or 79 cents per share. Starbucks digital rewards membership grew 13% to 27.4 million members. The company opened 318 net new stores in the third quarter, ending the quarter with 34,948 stores worldwide.
“We delivered record revenue performance in the quarter driven by continued strength in customer demand globally, balanced by our ability to execute investments despite macroeconomic and operational headwinds,” said Chief Financial Officer Rachel. Ruggeri in a statement. “Our commitment to creating shareholder value has not wavered, and today we are making the right decisions and the right investments for the future of Starbucks.”
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