Summary
Starbucks Corporation reported its fiscal second quarter 2022 results, showing a notable increase in net revenues, driven by strong performance in the U.S. and new store openings. Consolidated net revenues grew by 14.5% year-over-year to $7.6 billion. This growth was primarily fueled by a 12% rise in comparable store sales in North America, reflecting a combination of increased average ticket and transaction volumes. The company continued its expansion, adding 885 net new company-operated stores globally over the last twelve months. Despite the revenue growth, the company faced margin pressures. Operating margin decreased by 240 basis points to 12.4%, largely attributed to inflationary pressures on commodities and supply chain costs, alongside increased investments in partner wages and benefits. The international segment, particularly China, experienced significant headwinds due to COVID-19 related restrictions, leading to a 23% decline in comparable store sales in that market. The company also announced a temporary suspension of its share repurchase program to reallocate capital towards investments in stores and partners.
Financial Highlights
53 data points| Revenue | $7.64B |
| Operating Expenses | $6.74B |
| Operating Income | $948.90M |
| Interest Expense | $119.10M |
| Net Income | $674.50M |
| EPS (Basic) | $0.59 |
| EPS (Diluted) | $0.58 |
| Shares Outstanding (Basic) | 1.15B |
| Shares Outstanding (Diluted) | 1.15B |
Key Highlights
- 1Consolidated net revenues increased by 14.5% to $7.6 billion for Q2 FY2022.
- 2North America comparable store sales grew by 12%, driven by a 7% increase in average ticket.
- 3China comparable store sales declined by 23% due to COVID-19 related restrictions.
- 4Operating margin decreased by 240 basis points to 12.4% due to inflationary pressures and increased labor costs.
- 5The company added 885 net new company-operated stores globally over the past 12 months.
- 6Starbucks temporarily suspended its share repurchase program on April 4, 2022.