Starbucks’ growth streak – in both financial numbers and portfolio size — continued in the second quarter of 2022 as the Seattle-based coffee chain reported 12% same-store sales growth in the U.S. and North America markets. The strength of the North America market was slightly offset by a struggling Chinese market, where sales were down 23% thanks to COVID-centric lockdowns.
Overall, global same-store sales grew 7%, driven by a 4% increase in average ticket and a 3% increase in transactions. Additionally, net revenues were up 15% to $7.6 billion: a Q2 record for the company, with net revenues for the North America segment up 17%.
“We are confident that the investments in our partners, our stores and our brand that we announced today will deliver returns in excess of historic levels and accelerate our growth long into the future,” Rachel Ruggeri, Starbucks CFO, said in a statement.
Starbucks is also investing heavily in real estate, with 313 net new stores in Q2, ending the period with 34,630 stores globally.
“Given record demand and changes in customer behavior we are accelerating our store growth plans, primarily adding high-returning drive-thrus, and accelerating renovation programs so we can better meet demand and serve our customers where they are,” Howard Schultz, interim CEO said in a statement. “The investments we are making in our people and the company will add the capacity we need in our U.S. stores today and position us ahead of the coming growth curve ahead.”
Starbucks net income increased from $659.4 million or 56 cents per share in Q2 2021 to $674.5 million or 58 cents per share in Q2 2022.
Further analysis will follow after the earnings call on Tuesday afternoon.
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