Starbucks reported mixed results on Tuesday for the first quarter of 2022 ended on Jan. 2, with U.S. same-store sales up 18% and global same-store sales up 13%. But despite strong demand during the company’s usually busy holiday season, Starbucks’ income growth was slower than expected which may have been due to outside factors like inflation and COVID-19-related labor costs, according to CEO Kevin Johnson.
“As we enter the third year of this pandemic, our stores continue to play an important role as a community gathering place that offers safe, familiar and convenient experiences for our customers,” Johnson said in a press statement accompanying the company’s earnings release. “Although demand was strong, this pandemic has not been linear, and the macro environment remains dynamic as we experienced higher-than-expected inflationary pressures, increased costs due to Omicron and a tight labor market.”
As Starbucks recovers from previous pandemic-slowed quarters, financials may be uneven. Even as they move generally upward. U.S. same-store sales growth was driven by an increase in comparable transactions and a 6% increase in average ticket. Starbucks net revenues grew 19% year-over-year to $8.1 billion, driven by the same-store sales jump, especially as compared with COVID-19-related challenges during the first quarter of last year.
Starbucks reported quarterly net income of $815.9 million, or 69 cents per share, up from $622.2 million, or 53 cents per share, the same quarter the year prior.
The company also continues to grow its physical and digital footprint, with 4% net unit growth of 484 new stores opened globally over the past quarter, and loyalty program members up 21% year over year.
“Starbucks will continue to proactively address the industry challenges and operating environment while maintaining our focus on Starbucks partners and customers,” Johnson said in a statement. “Our brand is more resilient than ever as we navigate the future of Starbucks together.”
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