Starbucks hits record revenue filled with pumpkin spice profits

November 02, 2023 / 3:35 pm

Pumpkin spice really put the bucks in Starbucks. The Seattle-based coffee giant just reported record-breaking numbers from its most recent quarter.

“Our Reinvention is moving ahead of schedule, fueling revenue growth, efficiency and margin expansion,” Starbucks CEO Laxman Narasimhan said in a statement. “Notably, we continue to see the positive impact of our Reinvention on our partner and customer experiences, proof points that we can continue to create, grow and strengthen our business while creating value for all."

Narashimhan added that despite uncertainty in the months ahead, he believes this momentum can be sustained.

Starbucks' fourth fiscal quarter ended Oct. 1. During that 13-week timeframe, it pulled in a record $9.4 billion in net revenue, an 11% rise over the previous quarter. That includes an 8% rise in North American sales, and 5% internationally.

The Associated Press reports that Starbucks also experienced record-breaking weekly sales once its pumpkin spice latte returned to stores in August. It's the 20th anniversary of the drink that started a pumpkin spice craze.

Last year, Starbucks kicked off a $450 million "reinvention" plan aimed at upgrading its stores, and improving the experience of some sales, such as the speed it takes to make iced drinks. It also upped employee pay by 20%.

Starbucks now operates 20,000 stores internationally, bringing its total count to 38,038. The company opened 816 new stores over the fourth quarter alone. That number is net new stores, meaning some locations closed during this time, too.

Starbucks has closed a range of stores over the past year, such as its Capitol Hill location in Seattle, the first store to unionize. Amid a unionization effort over the past few years, the company has been accused of union busting.