Starbucks Tuesday reported quarterly earnings and revenue beat analysts’ expectations, fueled by better-than-expected international sales.
In China, the company’s second largest market, Starbucks saw same-store sales rise for the first time since Starbucks’ fiscal third quarter of 2021, as customers returned to its cafes after the policy was rolled back. zero Covid in the country.
However, the company’s shares fell 1.9% in extended trading.
Here’s what the company reported compared to what Wall Street expected, based on a Refinitiv analyst survey:
- Earnings per share: 74 cents adjusted vs. 65 cents expected
- Revenue: $8.72 billion vs. $8.4 billion expected
The coffee giant reported second-quarter net income of $908.3 million, or 79 cents per share, from $674.5 million, or 58 cents per share, a year earlier.
Excluding items, Starbucks earned 74 cents per share.
Net sales increased 14.2% to $8.72 billion. The company’s same-store sales increased 11% in the quarter, beating StreetAccount’s estimate of 7.1%. US and international markets exceeded expectations.
U.S. same-store sales jumped 12% as traffic soared 6%. Some catering businesses, like the owner of Outback Steakhouse Blooming brandsreported a drop in traffic, with customers abandoning their dining out. Starbucks joins other outliers like McDonald’s And Chipotle Mexican Grillwhich also saw traffic jump.
The company said the number of active members of its U.S. loyalty program increased 15% from the prior year period to 30.8 million in the quarter ended April 2.
Outside the United States, the coffee chain’s same-store sales increased 7%. In China, the metric increased by 3%. Last quarter, then-CEO Howard Schultz said the company expected its China business to recover in the second half of fiscal 2023.
The company said it would discuss its financial targets for fiscal 2023 during the conference call. Last quarter, Starbucks said it was revenue growth forecast 10% to 12% and growth in adjusted earnings per share in the low range of 15% to 20%.
Starbucks opened 464 net new locations during the quarter.