High profit, increased unit count, significant improvement in comparable sales: Starbucks is recovering in almost all segments, according to its fiscal 2021 and fourth quarter report (both ended October 3, 2021). But sluggish business in China is still causing investor disgruntlement.
"Our strong finish to fiscal 2021, including record performance in the fourth quarter, demonstrates the resilience of Starbucks and reinforces the value of the bold strategic moves we have taken over the past two years. Through it all, we have thoughtfully navigated a strong recovery with an eye towards our future, all guided by our Mission and Values,” said Kevin Johnson, president and ceo.
In addition, Johnson announced an increased investment in employees, called "partners" at Starbucks, especially in the United States. For example, wages for retail employees are to rise to an average hourly wage of almost 17 US dollars by the summer of 2022, and for baristas they are then to be between 15 and 23 US dollars.
Nevertheless, the annual report went down badly with investors - the share reacted after trading hours with significant price losses. Because while Starbucks benefited almost around the globe from the recovery from the pandemic, a new Corona wave in China caused lockdowns there again. That led to a seven percent drop in comparable sales in the fourth quarter in Starbucks' biggest growth market.