Starbucks Enjoys A Steaming Cup Of Success With $8.4 Billion In Revenue
Maybe you choose Starbucks for its holiday cups, or perhaps you swing by on your morning commute for fan-favorite breakfast items like egg bites and the spinach, feta, and egg white wrap. Maybe you even order from the elusive-yet-famous secret menu. However you like to visit your local Starbucks, one thing is clear: People are visiting, and they keep coming back.
According to QSR, the coffee giant's fourth-quarter sales hit an all-time high. Not only is this an impressive accolade for a company with an estimated net worth of over $52 billion, but it's also impressive considering recent nationwide cuts in discretionary spending. According to Steven Fazzari, professor of economics at Washington University in St. Louis, when consumers start cutting back on discretionary spending, eating out is one of the first things to go (via MoneyWise).
This holds particularly true in today's economic climate, as the decision to eat out is "more severe in the current circumstances because price increases have been concentrated especially for necessary items like gas, groceries, and rent." Earlier this year, fiscal analytics platform First Insight reported that 42% of consumers would be taking a pass on everyday culinary luxuries, like a grande White Peppermint Mocha, for example. But, these consumer trends certainly don't seem to be affecting Starbucks, as the company is performing surprisingly well in 2022.
A quarter for the books
During Q4 alone, Starbucks raked in a whopping $8.4 billion in revenue, per QSR. Not only is this 11% more than Q4 2021, but this year's global revenue hit a record $32.2 billion, up 13% from 2021 and up 15% in domestic sales. The company also enjoyed an 11% spike in same-store sales within the U.S. and 7% globally. These figures are owed to Starbucks' returning customer base, which saw 9% year-over-year growth. According to CEO Howard Schultz, the new customers primarily belong to Gen Z. Piper Sandler released its 44th semi-annual survey in Fall 2022, surveying 14,500 Gen Z foodies about their eating habits. The results? Starbucks was ranked as the number two most-popular restaurant among Gen Z foodies (following Chick Fil A) with 17% of the total vote.
These tremendous figures for corporate Starbucks come after the company raised prices by an average of roughly 6% since the start of 2022. Fans don't seem to be deterred — in September, the Pumpkin Spice Latte broke a major sales record, leading Starbucks to the highest-grossing sales week in company history with the release of its fall menu, per Restaurant Business. But, the PSL isn't even the top-seller for Starbucks. According to Schultz (via QSR), Starbucks' cold beverages make up 75% of its total sales in the U.S. Fans will have to sit tight and see what happens for the coffee giant in 2023.