The world’s biggest coffee chain reported that Q4 Consolidated Net Revenues were up 31% to a record $8.1 billion
Our strong finish to fiscal 2021, including record performance in the fourth quarter, demonstrates the resilience of Starbucks and reinforces the value of the bold strategic moves we have taken over the past two years.
Through it all, we have thoughtfully navigated a strong recovery with an eye towards our future, all guided by our Mission and ValuesKevin Johnson, president and ceo.
The company’s bounceback from Covid was secured by results, driven from strong US performance which was up 22% from Q4 last year, and 11% two-year growth.
The rest of the world was hardly a slouch with Q4 comparable sales up 17%
Breaking down the revenues: The US’s 22% growth was made up of an increase of 19% in comparable transactions, but an additional 3% in average ticket (the amount spent per transaction).
Internationally, the story was different with an increase of comparable transactions by 6%, which was then reduced by a 2% decrease in the average ticket value.
Hunting for some information on the company stores in China, we noted a disappointing performance, with comparable transactions dropping by 2%, and a worrying 5% drop in average ticket value.
The company share price went north on the news, defying investor gloom in late October which saw a strong sell-off of the stock.
The company plans to use some of the cash in a share repurchase, but we also noted it was going to increase the average worker’s wage to just under $17 per hour by the summer of 2022.
Today we announce we will be doubling-down on our investments in our partners, the heartbeat of our company. We know that when we exceed the expectations of our people, they in turn exceed the expectations of our customers – which creates value for all of our stakeholders – our partners, our customers, our communities and our shareholders.
We anticipate that our strong business momentum, increased operating efficiency and continued global store expansion will fund these unprecedented investments while delivering yet another year of significant growthKevin Johnson, president and ceo.
We wonder if this is a preemptive defensive move against the unionisation attempts at some of their stores which the company is fighting.
The companies performance has exceeded some analysts expectations and the question is now whether the Non-US markets can follow, and what is going to happen in China under the relatively new leadership of Leo Tsoi