Starbucks Corporation's global comparable sales up 2% in Q4
It is driven by a 2% increase in average ticket and a 1% increase in transactions.
Starbucks Corporation has reported financial results for its 13-week fiscal fourth quarter and 52-week fiscal year ended October 1, 2017.
Net revenues for the EMEA segment of $269.9m in Q4 were flat to the prior year quarter, which included an extra week. Excluding $18.3m for the extra week in Q4, net revenues grew 7%, driven by incremental revenues from the opening of 339 net new licensed stores over the past 12 months.
Operating income of $34.8m in Q4 declined 24% versus operating income of $45.8m in Q4. Operating margin declined 410 basis points to 12.9% primarily driven by sales deleverage in certain company-operated stores, the impact of a tax settlement, and the lapping of the 53rd week in Q4 FY16. Partially offsetting the decline was sales leverage due to the shift in the portfolio towards more licensed stores.
Membership in Starbucks Rewards grew 11% year-over-year to 13.3 million active members in the U.S., with member spend representing 36% of U.S. company-operated sales.
Starbucks' CEO and president Kevin Johnson said, "Today, Starbucks reported another quarter - and year - of strong performance, with each of our business segments around the world contributing to record results. Food, beverage and digital innovation are bringing customers into our stores at the same time as ongoing operational improvements are enabling us to drive increased throughput - particularly in our busiest stores at peak - and deliver a further elevated Starbucks Experience to our customers.”
Also, Unilever and Starbucks has announced their entry into a definitive agreement for Unilever to acquire the assets of the TAZO brand including TAZO’s signature recipes, intellectual property and inventory for $384 million. In turn, Starbucks will drive a single tea brand strategy and focus with its super premium tea brand, Teavana.
