CLAIM #52977 · Starbucks Corporation (SBUX) · 2023Q1 earnings call · Feb 2, 2023 · due Sep 30, 2023
“last year, we had expected China to be about 25% of the total company operating income, which is generally where it landed, we'll expect maybe closer to 50% based on what we know today.”
Rachel Ruggeri · CFO
In context
“n, which is our third largest company-operated market is also continuing with significant growth. This is our eighth consecutive quarter of strong revenue growth, driven by not only product but actually digital. Within Japan, we are rolling out the digital flywheel, Mobile Order & Pay is fully penetrated. We've doubled our sales of Mobile Order & Pay over the last quarter. And we just introduced multi-tier redemption, which has shown success in the U.S. We're seeing a significant improvement here as well. So as we think about going forward in these markets, we see more tailwind. The international travel is just starting to come back as they start to go to other markets as well, we're going to see further tailwind going forward. Rachel Ruggeri: And just to answer your other question, Sara, last year, we had expected China to be about 25% of the total company operating income, which is generally where it landed, we'll expect maybe closer to 50% based on what we know today. Operator: Thank you. Your next question comes from David Palmer with Evercore ISI. Please go ahead. David Palmer: Thanks and congratulations, Howard. Two big picture questions that often come up with long-term investors. I don't know if this is quite the forum, but maybe a quick comment on each. One would be how you're thinking about the brand and how it would do in a recession? Should we have one? Why would go perhaps better than 2007 and 2008. And then secondly, I think we can all agree that Zero COVID is the biggest factor with China. But any sort of metrics that make you feel confident that the brand would have a full recovery, people ask about competition in China? And any sort of metrics around brand scores or anything that gives you confidence that you'll have a full recovery would”
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SEC filings for SBUX ↗ · Claim quote is verbatim from the 2023Q1 earnings call.