Starbucks reports 2% sales increase in Q4 2017 financial results

Courtesy: CNN

USA – Starbucks Corporation has reported financial results for its fourth quarter and 52-week fiscal year ended October 1, 2017, recording a global comparable store sales increase of 2%, which was driven by a 2% increase in average ticket and a 1% increase in transactions.

According to the company, the sales increased up 3% excluding the impact from Hurricanes Harvey and Irma that hit the US East Coast this year.

Starbucks has also committed to return US$15billion to shareholders over the next 3years.

The coffee maker’s consolidated net revenues were US$5.7 billion versus US$5.7 billion in the prior year quarter.

Excluding US$412.4 million for the extra week in Q4 FY16, consolidated net revenues grew 8%.

Operating income of US$1.0 billion also declined 16.7% compared to the prior year quarter, making the non-GAAP operating income grow by 2.8% to US$1.1 billion.

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“Today, Starbucks reported another quarter – and year – of strong performance, with each of our business segments around the world contributing to record results,” said Kevin Johnson, CEO and president.

“Food, beverage and digital innovation are bringing customers into our stores at the same time as on-going operational improvements are enabling us to drive increased throughput – particularly in our busiest stores at peak – and deliver a further elevated Starbucks Experience to our customers.”

“Starbucks delivered solid top and bottom line growth – and our strongest quarterly traffic number in the U.S. since mid-2016 – despite a difficult operating environment in both the quarter and year,” said Scott Maw, CFO.

“Continued strong growth and performance from CAP demonstrates that Starbucks now has two significant profit engines driving our global returns, our North America business and the broader CAP market.”

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