Starbucks recorded quarterly same-store growth for the first time in two years, marking a turnaround for the global coffee chain.
In Q4, global comparable store sales increased by 1% and were mainly driven by a 1% increase in comparable transactions, surpassing Wall Street expectations of a 0.3% decline.
“We’re a year into our ‘Back to Starbucks’ strategy, and it’s clear that our turnaround is taking hold,” Starbucks chairman and CEO, Brian Niccol, said.
“Our return to global comp growth and the momentum we’re building give me confidence we’re on the right path to deliver the very best of Starbucks for our customers, partners and shareholders.”
The greatest quarterly growth was in international markets, where same-store sales rose by 3% while North America and the U.S. same-store sales remained flat.
Despite the quarterly growth, same-store sales for Starbucks fell by 1%, driven by a 2% decline in comparable sales transactions for the full year.
However, chief financial officer Cathy Smith warned shareholders not to celebrate this success too early.
“We know this continues to be a multi-year turnaround,” she said.
“We remain focused on driving our topline while managing the costs that are within our control to deliver durable, sustainable growth and long-term shareholder value.”
There was a 2% fall in both the North America and U.S. markets and international markets for comparable sales.
Net revenues for the company grew for both Q4 and the fiscal year.
In Q4, net revenues climbed by 5% to US$9.6 billion and increased 3% to US$37.2 billion for the full year.
The company reported earnings per share of 52 cents for the fourth quarter, when excluding restructuring costs, litigation settlements and other items.
Starbucks closed 627 stores and laid off around 900 non-retail employees during the quarter as part of its restructuring.
Starbucks (NASDAQ: SBUX) shares closed 1.47% lower at US$84.17, and declined a further 0.6% in after-hours trade. Its market cap is US$95.68 billion.
