Despite inflationary pressures and ongoing tensions with a growing union, Starbucks reported major growth momentum for the third quarter ended July 3, according to an earnings release posted on Tuesday. Same-store sales were up 3% globally, driven by a 6% increase in average ticket, partially offset by a 3% decline in comparable transactions. U.S. same-store sales were particularly strong, with a 9% increase in same-store sales, driven by 8% ticket growth.
One of the most notable milestones of the quarter was Starbucks’ record-breaking quarterly revenues, which grew 8.7% to $8.2 billion, with the North America segment alone increasing revenues by 13% to $6.1 billion. The Seattle-based coffee chain’s momentum was primarily driven by the U.S. and other markets outside of China, which took a nosedive in Q3 due to COVID-related store closures.
“We have clear line-of-sight on what we need to do to reinvent the company, elevate our partner and customer experiences and drive accelerated, profitable growth all around the world,” Howard Schultz, interim CEO, said in a statement. “The Q3 results we announced today demonstrate the early progress we have made in just four short months.”
Over the past quarter, one of the most significant company changes and announcements included Starbucks finishing the process of exiting Russia, following a promise to do so in the spring. All Russian Starbucks employees were given six months’ severance pay and assistance in finding new ventures.
Starbucks net income for Q3 2022 decreased nearly 21% from $1.2 billion or 97 cents per share to $913 million or 79 cents per share. Starbucks digital rewards membership was up 13% to 27.4 million members. The company opened 318 net new stores in Q3, ending the quarter with 34,948 stores globally.
“We delivered record-breaking revenue performance during the quarter from continued strength in customer demand globally, balanced with our ability to execute investments despite macroeconomic and operational headwinds,” CFO Rachel Ruggeri said in a statement. “Our commitment to deliver shareholder value has not wavered, and we are making the right decisions and investments today for the future of Starbucks.”
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