Starbucks posts record revenue of $9.2 billion

Starbucks on Tuesday reported a mixed fiscal third quarter, with earnings beating expectations, but same-store sales were slightly below expectations despite a big recovery in China. Same-store sales in China jump 46%, reversing last year's declines due to Covid infections.

The world's largest coffee chain reported third-quarter net income of US$1.14 billion, or US$0.99 per share, compared with US$912.9 million, or US$0.79 per share, in the same quarter of last year. Adjusted for restructuring and impairment costs, Starbucks earned $1 per share.

Revenue rose 12% to a record $9.2 billion, but was lower than Bloomberg's consensus estimates of $9.3 billion. Same-store sales, a key indicator of existing store performance, also missed analysts' expectations, up 10%, compared with estimates for an 11.12% increase.

International same-store sales grew 24% in the quarter, in line with estimates, driven by higher traffic. This included better-than-expected growth in China, which is still recovering after prolonged Covid-19 restrictions.

"I'm excited about our performance for the quarter," Starbucks CEO Laxman Narasimhan said during a call with analysts discussing financial results on Tuesday, noting that for the quarter revenue in China grew 51% year-over-year.

Source: Noticias Agrícolas