Starbucks smashes comparable sales estimates on broad strength across regions
Scott Olson
Starbucks Corporation (NASDAQ:SBUX) reported global comparable store sales rose 11% during FQ2 to smash the consensus estimate of +7.3%. Average ticket was up 6% and transactions were up 4% during the quarter.
Total revenue was up 14.5% during the quarter to $8.7B.
Comparable sales in North America increased 12% vs. +9.0% consensus, driven by an 5% increase in average ticket and 6% rise in comparable transactions. Operating margin rose to 19.1% of sales in the region from 17.1% a year ago.
International comparable sales rose 7% during the quarter vs. +1.5% consensus. China comparable store sales increased 3% vs. the consensus estimate for a -9.9% decline.
Active membership in Starbucks Rewards in the U.S. rose 15% to 30.8M during the quarter.
The company's consolidated non-GAAP operating margin jumped to 14.3% of sales from 13.0% a year ago. The margin increase was attributed to strategic pricing, sales leverage, productivity improvement, as well as lapping COVID-19 related pay. The expansion was partially offset by previously committed investments in labor, including enhanced store partner wages and benefits, as well as higher commodity and supply chain costs due to inflationary pressures.
Starbucks (SBUX) opened 464 net new stores during the quarter. The coffee chain ended the period with a record 36,634 stores globally.
Shares of Starbucks (SBUX) fell 0.95% in postmarket trading to $113.50 following a 0.09% dip during the regular session.
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