Starbucks Corporation reported financial results for its 14-week fiscal fourth quarter and 53-week fiscal year ended October 2.
"Starbucks Q4 of fiscal 2016 was the most profitable quarter—capping off the most profitable year—in our more than 24 years as a public company," says Scott Maw, CFO. "The strength and health of our business enables us to both fund profitable growth and return significant cash back to shareholders—a record $3.2 billion in fiscal 2016 alone."
“Starbucks record Q4 and fiscal 2016 financial and operating results in the face of ongoing economic, consumer and geopolitical headwinds, and the significant investments we continue to make in our people and our business, once again demonstrate the power, relevance and resilience of the Starbucks business and brand,” says Howard Schultz, Starbucks chairman and CEO. “The trust and confidence our customers have in the Starbucks brand—and in our store partners—is propelling our business forward in markets and channels around the world as never before.”
U.S. comparable store sales increase of 4 percent was comprised of 6 percent increase in average ticket and 1 percent decrease in traffic. After adjusting for the estimated impact of order consolidation related to the new Starbucks Rewards loyalty program, average ticket grew 4 percent and traffic grew 1 percent.
Consolidated net revenues grew 16 percent to $5.7 billion.
Consolidated operating income increased 27 percent to $1.2 billion.
Consolidated operating margin expanded 180 basis points to 21.5 percent.
The company opened 690 net new stores in the quarter, bringing total stores to 25,085 in 75 countries worldwide
Mobile Order and Pay represented 6 percent of U.S. transactions in the quarter, up from 5 percent in the prior quarter
Global comparable store sales increased 5 percent, comprised of a 6 percent increase in the Americas segment and a 3 percent increase in the China/Asia Pacific segment. Comparable store sales in the EMEA segment were flat.
Consolidated net revenues grew 11 percent to $21.3 billion.
Consolidated operating income increased 16 percent to $4.2 billion.
Consolidated operating margin expanded 80 basis points to 19.6 percent.
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