Starbucks tops comparable sales expectations off strong pricing in the U.S.
JohnFScott

Starbucks Corporation (NASDAQ:SBUX) reported global comparable store sales rose 7% during FQ4 to beat the consensus estimate of +4.1%. Average ticket was up 8% to offset a decline in transactions during the quarter.
Total revenue was $8.41B to top expectations by $90M.
Comparable sales in North America increased 11% vs. +7.6% consensus, driven by an 10% increase in average ticket. Comparable transactions were up 1% in the region. Operating margin fell to 18.6% of sales in the region from 21.8% a year ago with labor and input costs accelerating.
International comparable sales fell 9% during the quarter. China comparable store sales dropped 24%, driven by a 22% decline in transactions with COVID restrictions holding back traffic in key cities.
Active membership in Starbucks Rewards in the U.S. rose 16% to 28.7M during the quarter.
The company's consolidated non-GAAP operating margin fell sharply to 15.1% of sales from the 19.5% level a year ago, but was high enough to beat the consensus mark of 14.3%.
Starbucks (SBUX) opened 763 net new stores during the quarter. The coffee chain ended the period with a record 35,711 stores globally.
CEO Howard Schultz pointed to accelerating demand for Starbucks coffee around the world in FQ4 and throughout the year.
"And our Q4 results demonstrate early evidence of the success of our U.S. Reinvention investments. Reinvention will touch, and elevate, every aspect of our Starbucks partner, customer and store experiences, and ideally position Starbucks to deliver accelerated, sustainable, long-term, profitable growth and value creation beginning in 2023."
Starbucks (SBUX) has a conference call scheduled for 5:00 p.m. ET during which execs may be asked about store closings and the unionization battle.
Shares of Starbucks rose 2.72% AH to $86.98 following a 0.12% gain dip during the regular session.