Starbucks On Tuesday, it reported quarterly earnings and revenue that beat analyst expectations, helped by better-than-expected international sales.
In China, the company’s second-largest market, Starbucks saw same-store sales increase for the first time since Starbucks’ fiscal third quarter in 2021 as customers returned to its coffee shops after rolling back the country’s no-Covid policy.
However, the company’s shares were down 1.7% in extended trading.
Here’s what the company reported compared to what Wall Street was expecting, based on a survey of analysts conducted by Refinitiv:
- Earnings per share: 74 cents, adjusted versus 65 cents expected
- Revenue: $8.72 billion vs. $8.4 billion expected
The coffee giant reported second-quarter financial net income of $908.3 million, or 79 cents per share, up from $674.5 million, or 58 cents per share, a year earlier.
Excluding items, Starbucks earned 74 cents per share.
Net sales rose 14.2% to $8.72 billion. The company’s same-store sales rose 11% in the quarter, beating StreetAccount’s estimate of 7.1%. Both the US and international markets outperformed expectations.
Same-store sales in the US jumped 12% with traffic up strikingly 6%. Some restaurant companies, such as the owner of Outback Steakhouse Bloomin Brandsthey reported diminished traffic as customers pulled out to eat out. Starbucks joins fellow outliers like McDonald’s And Chipotle Mexican Grillwhich also saw a jump in traffic.
Outside the United States, the coffee chain’s same-store sales increased 7%. In China, the metric rose 3%.
The company said it will discuss its financial goals for 2023 during the conference call. In the most recent quarter, Starbucks said it expects revenue growth of 10% to 12% and adjusted earnings-per-share growth at the lower end of 15% to 20%.
Starbucks opened 464 net new locations during the quarter.