On January 30th local time, Starbucks announced its first quarter financial report for the 2024 fiscal year ending on December 31st, 2023. In the quarter, Starbucks' comprehensive net revenue increased by 8%, reaching $9.4 billion (excluding the impact of exchange rate fluctuations). Global same store sales increased by 5%, same store transaction volume increased by 3%, and average unit price per customer increased by 2%. Among them, Starbucks China performed well, with revenue increasing by 20% to $735 million in the quarter (excluding exchange rate fluctuations), same store sales increasing by 10%, and same store transaction volume increasing by 21%.
In terms of stores, Starbucks China added a net 169 new stores in the first quarter, entering 28 county-level markets. At the end of the quarter, the total number of stores reached 6975. It is understood that currently, Starbucks has exceeded 7000 stores in the mainland Chinese market.
It is worth mentioning that in the first quarter, Starbucks China continued to focus on new product research and development, launching a total of 12 new coffee drinks, including the popular Nong Xiao Cup series and the Red Cup holiday special drink series. In addition, digital services such as Zhuanxing Delivery and Feikuai have continued to grow, accounting for 52%, reaching a historic high, with a growth rate of 4% compared to the previous quarter.
"Starbucks' development in China is showing strong momentum. Starbucks' goal is to become the preferred brand in the high-end coffee market, and we are full of confidence in its long-term development in the Chinese market," said Starbucks' global CEO Nashan.
Nashan stated that Starbucks China strategy has three key elements: first, localized coffee products and innovative customer experience; The second is continuous investment in technology and digitization; The third is to explore more blank markets, accelerate the pace of market sinking, and open stores in more new county towns in China.
Starbucks China Chairman and CEO Wang Jingying stated that the long-term opportunities in the Chinese market are obvious, including increasing penetration into existing cities and entering new county-level markets. "Starbucks has no intention of participating in a price war. We focus on achieving high-quality, profitable, and sustainable growth. Since Starbucks pioneered a high-end coffee experience in China 25 years ago, our goal has always been to be the best and first in this market. We will continue to focus on high-quality coffee and cultural connections, bringing customers a high-end coffee experience," said Wang Jingying.