Move forward steadily?! Starbucks Coffee double increase in revenue and net profit in the second quarter of 2023

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Starbucks is one step closer to its strategic vision of China 2025!

On May 3, coffee chain giant Starbucks announced its results for the second quarter of fiscal 2023 (January 2, 2023 to April 2, 2023). Starbucks' consumer market is gradually picking up, with consolidated Q2 revenue of $8.716 billion, up 14 per cent, net profit of $908 million, up 34.66 per cent from a year earlier, and global same-store sales up 5 per cent, according to the results.

It is understood that in the Chinese market, Starbucks achieved a net income growth of 3%, with revenue of nearly US $800 million at the end of the quarter, same-store sales increased by 3%, and same-store transaction volume increased by 4%. Same-store sales are growing for the first time since the third quarter of fiscal 2021, far exceeding market expectations.

In terms of store growth, Starbucks China saw a net increase of 153 stores during the quarter, more than double the previous quarter and ushered in an explosive growth. According to the narrow-door dining eye, Starbucks China currently has more than 7017 stores in 268 cities in 32 provinces.

It is not difficult to see that the double increase in revenue and profit has a lot to do with the expansion of Starbucks stores. With the weakening of the impact of the epidemic factors, enterprises around the world are returning to normal operations and achieving corresponding growth. In contrast, today's market passenger traffic has ushered in a "strong rebound"!

Wang Jingying, chairman and chief executive of Starbucks China, said: the Chinese market has opened a new chapter, and the second quarter marks the beginning of a sound and comprehensive recovery in Starbucks China, according to several media reports. Starbucks same-store sales in China grew by 30% in March, and this growth will continue in the third quarter. Starbucks China will boost revenue and profits in the second half of this year and in the longer term, and accelerate the opening of new stores.

It is worth mentioning that Starbucks put forward its strategic vision for China at an investor exchange meeting earlier, and the total number of Starbucks stores in China will reach 9000 by 2025. From this point of view, Starbucks' operation of the Chinese market is steadily moving forward towards the goal of operating 9000 stores in 2025!

More than a week before the results were released, when Starbucks founder Howard Schultz shared the results with Peking University's Guanghua School of Management on April 23, he also said that the size and potential opportunities of the Chinese market were still huge. "I believe that one day Starbucks' business in China will eventually surpass that of the United States, and the number of stores in China will exceed 10000," he said. "

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According to the latest financial report of Luckin Coffee, an "old rival" at the beginning of this month, both sides are collectively improving, but in terms of the proportion of performance growth, the growth rate of Starbucks is far less than that of Luckin Coffee. Luckin Coffee's financial report for the first quarter showed that its revenue in a single quarter was 4.44 billion yuan, an increase of 84.5% over the same period last year; its net profit was about 680 million yuan; and there were 1137 net stores, bringing the total to 9351.

In the face of such a highly competitive coffee track, coupled with increasingly fierce store opening plans, what measures will Starbucks take to the Chinese market? Let's wait and see!