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Following its fiscal Q4 2022 financial reports, Starbucks expects its revenue to grow between 10% to 12% in fiscal 2023.
Starbucks (NASDAQ: SBUX) said customers are spending more on pricey drinks, which triggered better-than-expected earnings in fiscal Q4 2022. Its quarterly profits and revenues exceeded analysts’ expectations as there is high demand for Pumpkin Spice Lattes and iced coffee drinks. As a matter of fact, the company is now beginning to have more sales in the US, just as in the pre-Covid season. Starbucks said US traffic rebounded in fiscal Q4 2022 to nearly 2019 levels. Active members of the loyalty program also surged 16% to 28.7 million during the three months.
Starbucks Performed Excellently in Fiscal Q4 2022
While analysts estimated 72 cents earnings per share (EPS), the coffeehouse company has 81 cents. Also, revenue came in at $8.41 billion, more than the expected 48.31 billion. Starbucks noted that its net sales during fiscal Q4 2022 increased by 3.3% to $8.41 billion. At the same time, higher spending in its home market contributed to a 7% gain in global same-store sales. Specifically, same-store sales growth in the US reached 11%, with consumers spending more on average. Another reason is the slight increase in traffic. Despite the prices being up, Starbucks saw gains and an increase in consumers. The coffee company pumped its prices 6% YoY. Moving ahead, executives have assured that there will not be additional price raises for some time.
Speaking on the rebounds, chief financial officer Rachel Ruggeri noted:
“Despite elevated pricing actions taken throughout the year, daily store traffic in the US reached approximately 95% pre-pandemic levels in September fueled by the wildly successful fall promotion.”
The record shows that Starbucks sold more cold beverages during fiscal Q4 2022. Cod beverages represented over three-quarters of beverage sales in the U.S. The company also mentioned that consumers are likely to spice their cold drinks up with pricy syrups, dairy substitutes, and cold foam. All of which are contributing to the higher prices. That is not to say that hot coffee drinks are out of the way. Starbucks North American President Sara Trilling. Sales of Pumpkin Spice Latte rose 70% YoY.
Fiscal 2023 Projections
Following its fiscal Q4 2022 solid financial reports, Starbucks expects its revenue to grow between 10% to 12% in fiscal 2023. Also, the company is projecting a 9% increase in global same-store sales. However, it stated that the current lockdown in China could impact sales in the location. Starbucks also referred to the costs of its reinvention plan.
Hopes are high, and fingers are crossed on what the future holds for Starbucks stocks. The company has constantly been declining over the past year, losing almost 28%. In addition to shedding 27.61% since the year started, the coffee company’s shares also dipped 1.22% in the last three months. Over the past month, Starbucks stock has dropped 2.70% and lost 2.78% in the last five days.