Starbucks will also increase its growth rate in the next fiscal year in China.
Editor’s note: This article is from WeChat public account “Financial Graffiti” (ID :caijingtuya), author Shi Yuanjing,edit tuya.
According to the company’s intelligence expert “Financial Graffiti” news, Starbucks released its fourth quarter and full-year financial results for the 2019 fiscal year ending September 29, 2019, with revenue exceeding analysts’ expectations. Affected by the earnings report, Starbucks rose more than 1% after the US stock market opened last night.
According to financial reports, Starbucks’ fourth-quarter revenue exceeded Wall Street analysts’ expectations, with net revenues of $6.747 billion, up 7% from $6.304 billion in the same period last year, exceeding analysts’ previous expectations of $6.68 billion; Net profit was $802.9 million, an increase of 6.23% year-on-year with $755.8 million in the same period last year. Diluted earnings per share were $0.41, up from $0.36 in the same period last year. Adjusted earnings per share were $0.70, up 13% year-on-year, in line with analysts’ expectations. In 2019, the annual revenue reached 26.5 billion US dollars, an increase of 7.2%.
According to the region, revenue from the Americas business was $4.651 billion, up 9% year-on-year with $4.26 billion in the same period last year; revenue from international operations was $15.72, up 6% year-on-year.
In terms of sales, Starbucks’ global same-store sales increased by 5% in the fourth quarter, with same-store sales in the US and the Americas growing by 6%. In international business, China’s same-store sales increased by 5%, of which 3% were driven by higher unit prices. 2% is brought about by the increase in trading volume. In the fourth quarter, Starbucks opened a total of 630 stores in new stores.(Net value), the total number of stores as of the end of the quarter reached 31,300, an increase of 7% compared with the same period last year.
It is worth mentioning that Starbucks also pointed out in the financial report that in FY 2019, it returned $12 billion in cash to the company’s shareholders and announced that it will raise its quarterly dividend by 14% to $0.41 per share.
The increase in revenue in FY 2019 was mainly due to its diversified product selection, the most notable of which was Starbucks’ promotion of “Cryogenic Creme” since the summer of this year. As one of the major innovations in the coffee industry, Cold Extract Coffee is very popular in the US market and promoted Starbucks sales growth in the second quarter of this year. Starbucks plans to cover all of its stores in the United States by the end of the year.
For the outlook for FY 2020, Starbucks expects revenue growth in the next fiscal year to be in the 6% to 8% range, with operating profit growth expected to be between 8% and 10%. Global same-store sales increased by 3% to 4%, and the number of newly opened Starbucks stores in the world reached 2,000. The growth rate in China will be in the middle of the 10% to 19% range, which also confirms Starbucks’ Chinese market. Value.
Starbucks, the leading player in the coffee industry, has a pivotal position in the global market, but in China in recent years it has faced challenges and competition that cannot be underestimated. The competition in the Chinese coffee market has become increasingly fierce, and the track has become increasingly crowded. The chain of coffee brands represented by Ruixing Coffee has taken the lead in its market leadership.
Despite the amazing speed of burning money and the loss of performance data, Ruixun Coffee is one of the “opening madmen”. It can be said to be vigorous and vigorous in terms of execution and operation speed. It has been established nationwide since January 2018. Since the storefront, it has more than 3,000 stores in 40 cities. In September this year, it announced that its Xiaolu tea business has been separately separated into independent brands for independent operation and accelerated into the new tea industry.
The amazing execution, the rapid expansion of the number of stores and the high subsidy routines have also attracted a certain user base for Ruixing, which is bound to have a certain impact on Starbucks’ business in China. In addition, non-traditional coffee companies such as Sinopec Yijie, OYO Hotel and Suning Store have also joined the “mixed war” to make the market more competitive.
Starbucks has therefore adjusted its strategy of operating in the Chinese market and increased the importance of the takeaway business. Since 2018, Starbucks has opened up cooperation with Hunger and launched the service. In August of this year, the “Men Express” store was established. Compared with the traditional store, it has a smaller seating area and only 1-2 seats. Barista, the main cache and delivery service. In the future, in addition to continuing to open high-end cosmetics stores, Starbucks will focus on the expansion of first-tier cities in the “Picture Fast” small-area stores to strengthen market penetration.
There is a view that the store is in the form of Starbucks’ counterfeiting of coffee shops in the Chinese market to fill the gap in the delivery service.