Starbucks Accelerates Reinvention Plan and Reports Latest Financial Results; Laxman Narasimhan Details

At Deli Market News, any Starbucks Corporation updates are welcomed as we are fiends for coffee. With its Reinvention plan in place, the coffee behemoth recently released its financial results for its 13-week fiscal fourth quarter, which ended October 1, 2023, and its full fiscal year 2023.

“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.”

Overall, in the fourth quarter, Starbucks saw an 8 percent increase in global comparable store sales, a release explained. This was driven by a 4 percent increase in average ticket and a 3 percent increase in comparable transactions. Other highlights from the quarter include:

• North America and U.S. comparable store sales increased by 8 percent, driven by a 6 percent increase in average ticket and a 2 percent increase in comparable transactions
• International comparable store sales increased 5 percent, driven by a 6 percent increase in comparable transactions and a 1 percent decline in average ticket
• The company opened 816 net new stores in Q4, ending the period with 38,038 stores
• Consolidated net revenues are up 11 percent, to a record $9.4 billion, or 12 percent, excluding a 1 percent unfavorable impact from foreign currency translation

For the full fiscal year 2023, global comparable store sales increased by 8 percent, driven by a 5 percent increase in average ticket and a 3 percent increase in comparable transactions. Consolidated net revenues were up 12 percent, to a record $36 billion, or 14 percent, excluding a 2 percent unfavorable impact from foreign currency translation.

“Our strong full fiscal year 2023 performance demonstrated our durable long-term growth and Reinvention plan execution,” commented Rachel Ruggeri, Chief Financial Officer. “We are proud that our full fiscal year 2024 guidance will be grounded on a balance of both revenue growth and margin expansion.”

To read the release in its entirety, click here.

Stick with Deli Market News to see how Starbucks accelerates its Reinvention strategy.