Starbucks: Reports Record Q4 and FY Fiscal 2021 Results

Seattle / WA. (sc) The Starbucks Corporation reported financial results for its 14-week fiscal fourth quarter ended October 03, 2021. «Our strong finish to fiscal 2021, including record performance in the fourth quarter, demonstrates the resilience of Starbucks and reinforces the value of the bold strategic moves we have taken over the past two years. Through it all, we have thoughtfully navigated a strong recovery with an eye towards our future, all guided by our Mission and Values,» said Kevin Johnson, president and ceo.

«We announce we will be doubling-down on our investments in our partners, the heartbeat of our company. We know that when we exceed the expectations of our people, they in turn exceed the expectations of our customers – which creates value for all of our stakeholders – our partners, our customers, our communities and our shareholders. We anticipate that our strong business momentum, increased operating efficiency and continued global store expansion will fund these unprecedented investments while delivering yet another year of significant growth,» concluded Johnson.

Fiscal 2021 Re-segmentation

In the fourth quarter of fiscal 2021, certain changes were made to the company’s management team, and the operating segment reporting structure was realigned as a result. The company realigned the fully licensed Latin America and Caribbean markets from the Americas operating segment to the International operating segment. The Americas operating segment has been renamed the North America operating segment, comprised of company-operated and licensed stores in the U.S. and Canada. Fiscal 2020 segment information has been restated to conform with current period presentation. There was no impact to consolidated net revenues, consolidated operating income or net earnings per share as a result of these changes.

Q4 Fiscal 2021 Highlights

  • Global comparable store sales increased 17 percent, driven by a 15 percent increase in comparable transactions and a 2 percent increase in average ticket
  • North America comparable store sales increased 22 percent, primarily driven by an 18 percent increase in comparable transactions and a 3 percent increase in average ticket; U.S. comparable store sales increased 22 percent, driven by a 19 percent increase in comparable transactions and a 3 percent increase in average ticket
  • International comparable store sales increased 3 percent, driven by a 6 percent increase in comparable transactions, partially offset by a 2 percent decline in average ticket; China comparable store sales decreased 7 percent, driven by a 5 percent decline in average ticket and a 2 percent decline in transactions; International and China comparable store sales include adverse impacts of approximately 3 percent and 4 percent, respectively, from lapping prior-year value-added tax exemptions in China
  • The company opened 538 net new stores in the fourth quarter of fiscal 2021, yielding 4 percent year-over-year unit growth, ending the period with a record 33,833 stores globally, of which 51 percent and 49 percent were company-operated and licensed, respectively
    • Stores in the U.S. and China comprised 62 percent of the company’s global portfolio at the end of the fourth quarter of fiscal 2021, with 15,450 and 5,360 stores, respectively
  • Consolidated net revenues of USD 8.1 billion grew 31 percent (22 percent on a 13-week basis(1)) compared to the prior year, mainly driven by a 17 percent increase in comparable store sales primarily from lapping the unfavorable impact of business disruption in the prior year due to the COVID-19 pandemic and strength in U.S. company-operated store sales in the current year in addition to the impact of the extra week in Q4 fiscal 2021
  • GAAP operating margin of 18.2 percent increased from 9.0 percent in the prior year primarily driven by sales leverage from business recovery and the lapping of COVID-19 related costs in the prior year as well as pricing in North America, partially offset by increased supply chain costs due to inflationary pressures; GAAP operating margin also benefited from lapping the higher restructuring activities in the prior year primarily associated with the North America Trade Area Transformation
    • Non-GAAP operating margin of 19.6 percent increased from 13.2 percent in the prior year
  • GAAP earnings per share of USD 1.49 grew from USD 0.33 in the prior year including a USD 0.56 gain on the divestiture of our South Korea joint venture and USD 0.10 related to the extra week in Q4 fiscal 2021
    • Non-GAAP earnings per share of USD 1.00 grew from USD 0.51 in the prior year including USD 0.10 related to the extra week in Q4 fiscal 2021
  • Starbucks® Rewards loyalty program 90-day active members in the U.S. increased to 24.8 million, up 28 percent year-over-year

Full Year Fiscal 2021 Highlights

  • Global comparable store sales increased 20 percent, primarily driven by a 10 percent increase in average ticket and a 9 percent increase in comparable transactions
    • North America comparable store sales increased 22 percent, primarily driven by a 13 percent increase in average ticket and a 7 percent increase in comparable transactions; U.S. comparable store sales increased 21 percent, driven by a 13 percent increase in average ticket and an 8 percent increase in comparable transactions
    • International comparable store sales were up 16 percent, driven by a 14 percent increase in comparable transactions and a 1 percent increase in average ticket; China comparable store sales increased 17 percent, driven by a 19 percent increase in comparable transactions and a 2 percent decrease in average ticket
  • Consolidated net revenues of USD 29.1 billion increased 24 percent (21 percent on a 52-week basis) from the prior year mainly driven by a 20 percent increase in comparable store sales primarily from lapping the unfavorable impact of business disruption in the prior year due to the COVID-19 pandemic
  • GAAP operating margin of 16.8 percent, up from 6.6 percent in the prior year primarily driven by sales leverage from business recovery and the lapping of COVID-19 related costs in the prior year as well as pricing in North America, partially offset by additional investments and growth in wages and benefits for store partners
    • Non-GAAP operating margin of 18.1 percent, up from 9.1 percent in the prior year
  • GAAP earnings per share of USD 3.54 grew from USD 0.79 in the prior year including a USD 0.56 gain on the divestiture of our South Korea joint venture and USD 0.10 related to the 53rd week in fiscal 2021
    • Non-GAAP earnings per share of USD 3.24 grew from USD 1.17 in the prior year including USD 0.10 related to the 53rd week in fiscal 2021

For additional information please read the company’s PDF file below (419 KB):

20211029-STARBUCKS-Q4-2021
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