Today, Starbucks released its 2019 fourth-quarter earnings, with revenues of $6.747 billion, net profit of $802.9 million, and global same-store sales growth of 5%, all of which exceeded analyst expectations.
In the fourth quarter, same-store sales in the US market grew by 6%; China’s same-store sales growth was 5%, and total transaction volume increased by 13%. Our strong performance throughout FY 2019 gives us confidence in our 2020 operational prospects.
Starbucks CEO Kevin Johnson at said in the announcement.
Reviewing the entire fiscal year, Starbucks has opened more than 600 new stores in China, with more than 4,000 stores, which is officially considered to be the biggest driver of growth.
After a strategic partnership with Alibaba, Starbucks completed the goal of providing “special star delivery” services to 3,000 stores in 100 cities nationwide. In the fourth quarter, “special star delivery” take-outs accounted for 7% of China’s total sales, which is the main reason for growth.
In addition, the small store “Starbucks Now”, which was launched in May this year, is also developing well, contributing 3% of sales in the fourth quarter. Johnson said in a conference call that in the next 2020 fiscal year, Starbucks will continue to launch “Crystal Express” stores in first-tier cities in China.
▲ “Broth Express” store
However, Starbucks CFO Patrick J. Grismer said in a conference call that although takeaways bring in new consumption, the profit from takeaways is relatively low compared to traditional store-to-store consumption.
By adding service categories, Starbucks’ Star Club membership reached 10 million in the fourth quarter, an increase of 45%.