Starbucks revenues grow 11% in 2016
The coffee chain reported its financial results for its 14-week fiscal fourth quarter and 53-week fiscal year ended October 2, 2016.
For the fourth quarter, Starbucks U.S. comparable store sales increased 4%, with consolidated net revenues growing 16% to $5.7 billion and consolidated operating income jumping 27% to $1.2 billion. Consolidated operating margin for the quarter expanded 180 basis points to 21.5%.
Global comparable store sales for the full fiscal year increased 5%, comprised of a 6% increase in the Americas segment and a 3% increase in the China/Asia Pacific segment. However, comparable store sales in the EMEA segment were flat.
Consolidated net revenues in 2016 grew 11% to $21.3 billion, while consolidated operating income rose 16% to $4.2 billion. Consolidated operating margin expanded 80 basis points to 19.6%.
Starbucks opened 2,042 net new stores globally in fiscal 2016, including the first Starbucks stores in Cambodia, Kazakhstan, Luxembourg, Andorra, South Africa, Slovakia, and Trinidad and Tobago.
“Starbucks record Q4 and fiscal 2016 financial and operating results in the face of ongoing economic, consumer and geopolitical headwinds, and the significant investments we continue to make in our people and our business, once again demonstrate the power, relevance and resilience of the Starbucks business and brand,” said Howard Schultz, Starbucks chairman and CEO.
“The trust and confidence our customers have in the Starbucks brand - and in our store partners - is propelling our business forward in markets and channels around the world as never before.”
"Starbucks Q4 of fiscal 2016 was the most profitable quarter - capping off the most profitable year - in our more than 24 years as a public company," said Scott Maw, CFO.
"The strength and health of our business enables us to both fund profitable growth and return significant cash back to shareholders - a record $3.2 billion in fiscal 2016 alone."
