Starbucks (NASDAQ:SBUX) has quietly grown into one of the most dominant fast food brands in North America and around the world. The Seattle-based chain is the largest coffeehouse on the planet. Shares of Starbucks shot up 9.5% on Thursday, November 3 after the company unveiled its fourth quarter (Q4) and full year earnings.
The company reported total revenues of $9.37 billion, which beat out analyst expectations. Meanwhile, Starbucks delivered earnings of $1.22 billion or $1.06, per share which beat expectations and was up from $878 million or $0.76 per share in the previous year. Net sales increased 11.4% year-over-year to $9.37 billion.
Starbucks’ same-store sales rose 8% in the final quarter of fiscal 2023. Moreover, it reported customer traffic growth of 3%. Recently, Starbucks debuted its always-popular fall menu. That included the pumpkin cream cold brew the and the iconic pumpkin spice latté. These drinks have established a reputation that has consistently driven increased customer traffic.
China is Starbucks’ second largest market in 2023. In China, the company reported that same-store sales increased 5% from the previous year and customer traffic rose by 8%. However, the average ticket fell 3% compared to Q4 fiscal 2022.
Looking ahead to 2024, Starbucks aims to bolster same-store sales growth in its domestic and international markets. Moreover, it has big plans for the rest of the decade. Indeed, Starbucks aims to open 55,000 by 2030. The executive team has reiterated that the company has not saturated the U.S. market, which means there are still plentiful opportunities.
