SEATTLE--(BUSINESS WIRE)--Starbucks Corporation reported financial results for its 14-week fiscal fourth quarter and 53-week fiscal year ended October 2, 2016. Fiscal 2016 and fiscal 2015 GAAP results include items which are excluded from non-GAAP results.
Q4 Fiscal 2016 Highlights:
- U.S. comparable store sales increase of 4% was comprised of 6% increase in average ticket and 1% decrease in traffic. After adjusting for the estimated impact of order consolidation related to the new Starbucks Rewards™ loyalty program, average ticket grew 4% and traffic grew 1%.
- Consolidated net revenues grew 16% to $5.7 billion
- Consolidated operating income increased 27% to $1.2 billion
- Consolidated operating margin expanded 180 basis points to 21.5%
- GAAP EPS increased 26% to $0.54 per share and included $0.06 related to the extra week in Q4 FY16
o Non-GAAP EPS of $0.56 included $0.06 related to the extra week in Q4 FY16. Excluding the extra week, non-GAAP EPS of $0.50 grew 16% over Q4 FY15 non-GAAP EPS
- The company opened 690 net new stores in the quarter, bringing total stores to 25,085 in 75 countries worldwide
- Mobile Order and Pay represented 6% of U.S. transactions in the quarter, up from 5% in the prior quarter
Fiscal Year 2016 Highlights:
- Global comparable store sales increased 5%, comprised of a 6% increase in the Americas segment and a 3% increase in the China/Asia Pacific segment. Comparable store sales in the EMEA segment were flat.
- Consolidated net revenues grew 11% to $21.3 billion
- Consolidated operating income increased 16% to $4.2 billion
- Consolidated operating margin expanded 80 basis points to 19.6%
- Company reports record 53- and 52-week, GAAP and non-GAAP revenue, operating income and operating margin
- GAAP EPS increased 4% to $1.90 per share and included $0.06 related to the extra week in Q4 FY16
o Non-GAAP EPS of $1.91 included $0.06 related to the extra week in Q4 FY16. Excluding the extra week, non-GAAP EPS of $1.85 grew 17% over FY15 non-GAAP EPS
- The company opened 2,042 net new stores globally in fiscal 2016, including the first Starbucks stores in Cambodia, Kazakhstan, Luxembourg, Andorra, South Africa, Slovakia, and Trinidad and Tobago
“Starbucks record Q4 and fiscal 2016 financial and operating results in the face of ongoing economic, consumer and geopolitical headwinds, and the significant investments we continue to make in our people and our business, once again demonstrate the power, relevance and resilience of the Starbucks business and brand,” said Howard Schultz, Starbucks chairman and ceo. “The trust and confidence our customers have in the Starbucks brand - and in our store partners - is propelling our business forward in markets and channels around the world as never before.”
"Starbucks Q4 of fiscal 2016 was the most profitable quarter - capping off the most profitable year - in our more than 24 years as a public company," said Scott Maw, cfo. "The strength and health of our business enables us to both fund profitable growth and return significant cash back to shareholders - a record $3.2 billion in fiscal 2016 alone."
Fourth Quarter Fiscal 2016 Summary
Consolidated net revenues were $5.7 billion in Q4 FY16, an increase of 16% over Q4 FY15. The increase was primarily driven by the impact of the 53rd week in Q4 FY16, incremental revenues from the opening of 2,042 net new stores over the past 12 months, and a 4% increase in global comparable store sales.
Consolidated operating income grew 27% to $1,227.5 million in Q4 FY16, up from $969.4 million in Q4 FY15. Consolidated operating margin expanded 180 basis points to 21.5% primarily due to sales leverage, the impact of the 53rd week in Q4 FY16, and lower commodity costs, primarily coffee. These increases were partially offset by higher salaries and benefits and investments in our partners (employees) and digital platforms.
Q4 Americas Segment Results
Net revenues for the Americas segment were $4.0 billion in Q4 FY16, an increase of 17% over Q4 FY15. The increase was driven by the impact of the 53rd week in Q4 FY16, a 5% increase in comparable store sales, and incremental revenues from 804 net new store openings over the past 12 months.
Operating income of $1,096.9 million in Q4 FY16 grew 30% versus $840.6 million in Q4 FY15. Operating margin of 27.6% expanded 280 basis points primarily due to sales leverage and the impact of the 53rd week in Q4 FY16. Partially offsetting this expansion were increased investments in our store partners (employees). Full report.
