Seattle, WA (August 1, 2023) – Starbucks Corporation (NASDAQ: SBUX) today announced record quarterly revenue of $7.3 billion, driven by strong growth in China. The coffee giant’s revenue rose 19% in the second quarter, compared to the same period last year.
Same-store sales in China increased 24%, the highest quarterly growth rate in the company’s history. Starbucks has more than 5,000 stores in China, and the country is now its second-largest market after the United States.
“We are very pleased with our strong performance in the second quarter,” said Kevin Johnson, Starbucks CEO. “Our growth in China is truly remarkable, and we are excited about the opportunities ahead.”
In addition to China, Starbucks also saw strong growth in other international markets, such as Japan, Korea, and Mexico. Same-store sales in these markets increased 14%, 16%, and 12%, respectively.
In North America, same-store sales increased 7% in the second quarter. This was below the company’s guidance of 8% to 10% growth, but it was still a solid performance.
“We are pleased with our North American results,” said Johnson. “We are seeing strong demand for our coffee and food, and we are making progress on our initiatives to improve the customer experience.”
Starbucks also announced that it is increasing its quarterly dividend by 10%. The new dividend of 39 cents per share will be payable on September 15, 2023, to shareholders of record on August 15, 2023.
“We are committed to returning value to our shareholders,” said Johnson. “This dividend increase is a reflection of our strong financial performance and our confidence in the future.”
Analyst Take
Starbucks’ strong second-quarter results were driven by a number of factors, including strong growth in China, a recovery in North America, and a focus on innovation.
The company’s performance in China is particularly impressive. Starbucks has been investing heavily in the country for several years, and it is now reaping the rewards. China is now Starbucks’ second-largest market, and it is growing at a rapid pace.
In North America, Starbucks is also seeing strong demand for its coffee and food. The company is making progress on its initiatives to improve the customer experience, such as expanding its mobile ordering and payment capabilities.
Starbucks is also investing in innovation. The company has introduced a number of new products and services in recent years, such as its cold brew coffee and its Starbucks Reserve stores. These innovations are helping to drive growth and attract new customers.
Overall, Starbucks’ second-quarter results were very strong. The company is well-positioned for continued growth in the future.
About Starbucks
Starbucks Corporation is a coffee company that operates in 70 countries. The company has more than 30,000 stores worldwide. Starbucks is the world’s largest coffeehouse company.