On October 31st, Starbucks released its fourth quarter financial report. According to the financial report, Starbucks' net revenue for the fourth quarter was $783.7 million, a 6% increase compared to the previous quarter (excluding the impact of exchange rate fluctuations). In the fiscal year 2024, Starbucks China's net revenue reached $2.958 billion.
In terms of user operations, in the fourth quarter, Starbucks China added 1.5 million active members to its Star Enjoy Club, bringing the total number of active members to 23.5 million. By 2024, the total number of members had increased to 139.7 million, with member sales accounting for 74.4%, a year-on-year increase of 3.9%.
In terms of store expansion, Starbucks added a net of 290 new stores and entered 78 county-level markets in the fourth quarter. At the end of the quarter, Starbucks China had a total of 7596 stores, covering nearly 1000 county-level markets. In the fiscal year 2024, based on the annual store expansion plan, Starbucks China added 790 new stores, a year-on-year increase of 12%, setting a new historical high.
Previously, Starbucks had set a goal of opening 9000 stores in China by 2025 and accelerating the expansion of stores in lower tier cities and new county-level markets. The business performance of newly opened stores in these markets continues to outperform that of newly opened stores in higher tier cities. In the fiscal year 2024, Starbucks China entered 166 county-level markets, setting a new historical high, and the number of new markets entered nearly doubled compared to the previous fiscal year. Among them, half of the newly added stores are located in lower tier cities (third tier and below cities), and the proportion of newly added stores in lower tier cities has reached a historical high.
Starbucks China CEO Liu Wenjuan said that the coffee market in China continues to undergo profound changes, with frequent promotions and collective pressure on the entire industry, which has affected Starbucks' same store sales.
Liu Wenjuan believes that currently, the Chinese coffee market is highly active, and market fluctuations and changes are still ongoing. But the changes in the industry environment have further forged our strong operational capabilities, enabling us to achieve month on month growth in key areas of focus such as net income, store transaction volume, operating profit, and operating profit margin. Our confidence and commitment to the Chinese market remain firm, and we will continue to uphold a long-term development approach and overcome industry changes