Starbucks Corporation has reported consolidated net revenues of $8.7bn in the first quarter (Q1) of fiscal year 2023, a jump of 8% compared with the prior year’s quarter.

Its net revenues for the North America segment increased by 14% from Q1 2022 to $6.6bn in Q1 2023.

However, its net revenue in the international segment dropped 10% from Q1 2022 to $1.7bn in Q1 2023, primarily due to a 13% unfavourable impact from foreign currency translation, as well as a 13% drop in comparable store sales mainly attributable to ‘suppressed mobility in China’

Its global comparable store sales were up 5%, primarily due to a 7% increase in the average ticket and partially offset by a 2% decline in comparable transactions.

North America and US store sales grew 10%, driven by a 9% increase in the average ticket and a 1% rise in comparable transactions.

In the international segment, comparable store sales fell 13%, due to a 12% decline in comparable transactions and a 1% drop in the average ticket.

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By GlobalData

The company’s comparable store sales in China were down by 29%, due to a 28% decline in comparable transactions and a 1% drop in the average ticket.

In the 13-week period, Starbucks’ GAAP earnings per share grew 7% year-on-year to $0.74.

Its Non-GAAP earnings per share were $0.75, up by 4% from the previous year.

In the latest quarter, the company opened 459 net new stores, with the coffeehouse chain ending the period with 36,170 stores globally, of which 51% are company-operated while 49% are licensed.

However, the company reported a 14.4% decline in GAAP operating margin, compared with 14.6% in the prior year.

In the US, the Starbucks Rewards loyalty programme with 90-day active members was up by 15% year-over-year to 30.4 million.

Starbucks interim CEO Howard Schultz said: “Starbucks’ performance in Q1 demonstrates the strength and resilience of our business and accelerating demand for Starbucks Coffee all around the world.

“We posted today’s strong results despite challenging global consumer and inflationary environments, a soft quarter for retail overall, and the unprecedented, Covid-related headwinds that unfolded in China in Q1.”