Starbucks on Thursday reported quarterly earnings and revenue that beat analysts’ estimates, fueled by US customers spending more on their orders.
Shares rose 2.3% in after-hours trading following the earnings report.
Here’s what the company reported for the quarter ended Oct. 2, compared to Wall Street expectations based on a poll of analysts by Refinitiv:
- Earnings per share: 81 cents adjusted vs. 72 cents expected
- Revenue: $8.41 billion versus $8.31 billion expected
net sales rose 3.3% to $8.41 billion. Global same-store sales increased 7%, driven by higher spending in the home market.
In the United States, Starbucks reported 11% same-store sales growth due to people spending more on average and traffic picking up slightly. Its loyalty program saw a 16% increase in active membership to 28.7 million people during the quarter.
The ornate decor of Starbucks coffee chain in Xujiahui district attracts customers’ attention in Shanghai, China, 12 May 2021.
Cost Photo | Barcroft Media | Getty Images
Outside the US, the Covid-19 restrictions in China continued to weigh on Starbucks’ international performance. According to StreetAccount, the company’s international same-store sales fell 5%, which wasn’t as sharp as the expected 7.1% drop. Same-store sales in China, Starbucks’ second-largest market, fell 16% in the quarter.
In September, Starbucks updated its long-term guidance at its investor day, where it also unveiled a comprehensive strategy for reinventing the business. The company now expects earnings per share to grow 15% to 20% annually over the next three years. Additionally, global and US same-store sales are forecast to grow 7% to 9% annually.
Starbucks said in Thursday’s press release that executives will provide more details on its fiscal 2023 guidance on its quarterly conference call.
The coffee giant reported fourth-quarter net income attributable to Starbucks of $878.3 million, or 76 cents a share, compared to $1.76 billion, or $1.49 a share, a year ago.
Excluding restructuring and impairment charges, the sale of its Russian joint venture and other items, Starbucks earned 81 cents a share.
