Summary
Starbucks Corporation's fiscal year 2022, ending October 2, 2022, demonstrated revenue growth despite significant headwinds, particularly in its China market due to COVID-19 restrictions. Total net revenues increased by 11% to $32.3 billion, driven by strong performance in the North America segment and growth in international markets outside of China. However, operating income and diluted earnings per share (EPS) saw a decline compared to the previous year, primarily attributed to substantial investments in partner wages and training, inflationary pressures on commodities and supply chain, and sales deleverage in China. The company is actively implementing its "Reinvention Plan" in the U.S. to enhance efficiency and customer experience, expecting these initiatives, along with strategic pricing, to offset ongoing cost pressures in fiscal year 2023. Despite the operational challenges, Starbucks highlighted its brand resilience and strong customer demand. The company continued to invest in its workforce, offering comprehensive benefits and focusing on diversity, equity, and inclusion. Financially, Starbucks returned $6.3 billion to shareholders in fiscal 2022 through share repurchases and dividends, and resumed its share repurchase program in the first quarter of fiscal 2023 after a temporary suspension to prioritize investments in stores and partners. The company maintains a strong liquidity position and believes its future cash flows will be sufficient to fund its capital requirements and shareholder distributions.
Financial Highlights
54 data points| Revenue | $32.25B |
| Operating Expenses | $27.87B |
| Operating Income | $4.62B |
| Interest Expense | $482.90M |
| Net Income | $3.28B |
| EPS (Basic) | $2.85 |
| EPS (Diluted) | $2.83 |
| Shares Outstanding (Basic) | 1.15B |
| Shares Outstanding (Diluted) | 1.16B |
Key Highlights
- 1Total net revenues increased 11% to $32.3 billion in fiscal 2022, driven by strong performance in North America and international markets outside of China.
- 2Operating income decreased to $4.6 billion and diluted EPS fell to $2.83 in fiscal 2022, primarily due to increased investments in partner wages/training and inflationary pressures.
- 3The China market experienced a significant comparable store sales decline (-24%) due to COVID-19 related restrictions, impacting overall international segment performance.
- 4Starbucks announced and is implementing its 'Reinvention Plan' in the U.S. to improve efficiency, elevate partner and customer experience, and accelerate store innovations.
- 5The company returned $6.3 billion to shareholders in fiscal 2022 through dividends and share repurchases, and has resumed its share repurchase program in fiscal 2023.
- 6Starbucks reported approximately 402,000 employees worldwide as of October 2, 2022, with a continued focus on partner well-being, diversity, and inclusion.