The popularity and consumption power of the Chinese coffee market continue to be online, and brands frequently report good results.
On November 2nd, Starbucks released its fourth quarter and full year financial reports. Its fourth quarter revenue was approximately 9.37 billion US dollars, an increase of 11.4% year-on-year; The net profit attributable to the company was $1.22 billion, compared to $878 million in the same period last year, an increase of 38.8% year-on-year; Global same store sales increased by 8%, same store transaction volume increased by 3%, and average unit price per customer increased by 4%.
In the Chinese market, thanks to the continuous recovery of market demand, Starbucks' revenue in the fourth quarter was $840.6 million, a year-on-year increase of 15%; Same store sales increased by 5%, same store transaction volume increased by 8%, and average unit price per customer decreased by 3%; The same store sales increased by 2% throughout the year. According to the brand, in China, Starbucks' revenue continues to grow month on month every quarter, with "revenue in the second half of the year increasing by 20% compared to the first half.
As is well known, in recent years, the competition in the domestic coffee market has become increasingly fierce, and many domestic and foreign coffee brands are accelerating their expansion, the most direct manifestation of which is the increase in the number of stores. Starbucks is also like this.
According to the financial report, Starbucks added a net 326 stores in the fourth quarter, which means it opened an average of 3.5 new stores per day, setting a new historical record. It is worth noting that in the fourth quarter, Starbucks added a net 816 new stores globally, with a contribution rate of up to 40% in the Chinese market. Starbucks stated that its store expansion continued to accelerate throughout the fiscal year, with a 13% increase in the number of stores by the end of the fiscal year, reaching 6806.
By the end of fiscal year 2023, our number of stores had exceeded 6800, a year-on-year increase of 13%. The excellent profitability of our newly opened stores gave us full confidence to achieve our vision of 9000 stores by 2025, which is to open 1000 new stores annually, "said Laxman Narasimhan, Starbucks' CEO.
In fact, accelerating store expansion has become an important task for Starbucks globally. Starbucks Chief Financial Officer Rachel Ruggeri stated at the performance briefing that Starbucks' capital expenditure in the 2024 fiscal year will increase to approximately $3 billion, of which over 85% will be used to open new stores and renovate existing stores.
In terms of channels, Starbucks stated that its omnichannel business in the Chinese market continues to have a strong momentum, with fast growth in stores, fast food delivery, exclusive delivery, e-commerce, and other channels; At the end of the reporting period, there were over 21 million active members, a year-on-year increase of 22%, many of whom were young customers.
Looking ahead, Nasihan stated that the number of coffee drinkers in the Chinese market continues to grow, and Starbucks will steadily maintain its leading position in the high-end market, continuously develop store types, and enter more new cities.