There’s Always Money for Pumpkin Spice Lattes.
In another sign that consumers keep spending money, undeterred by inflation, Starbucks reported record sales for its fourth fiscal quarter ended October 2. The world’s largest coffee chain, operating more than 35,000 stores around the world, posted $8.4 billion in revenue, up 11% from the same quarter last year. That brings the company’s total sales for fiscal 2022 to $32.3 billion, up more than 20% from its pre-Covid high of $26.5 billion.
Looking at the full year, comparable store sales growth was not only driven by an increase in average ticket/order value (i.e. rising prices) but also by a small increase in the number of comparable store transactions, despite the negative impact of Covid restrictions on store traffic in China. That means, even amid a global cost of living crisis—which ought to make people think twice about discretionary spending—take-out coffee apparently remains non-negotiable for many consumers. There’s always money for Pumpkin Spice Lattes, it seems.