Starbucks earnings beat expectations as consumers spend more in its U.S. stores
Starbucks on Thursday reported quarterly earnings and revenue that topped analysts’ estimates, fueled by U.S. customers spending more on their orders.
Shares rose 2.3% in after-hours trading on the earnings report.
Here’s what the company reported for the quarter ended Oct. 2 compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: 81 cents adjusted vs. 72 cents expected
- Revenue: $8.41 billion vs. $8.31 billion expected
Net sales rose 3.3% to $8.41 billion. Global same-store sales increased 7%, fueled by increased spending in its home market.
In the United States, Starbucks reported same-store sales growth of 11%, which was the result of people spending more on average and a slight uptick in traffic. Its loyalty program saw its active membership climb 16% to 28.7 million people in the quarter.
The ornate art decor of the Starbucks coffee chain in Xujiahui district attracts customers’ attention in Shanghai, China, May 12, 2021.
Costfoto | Barcroft Media | Getty Images
Outside the U.S., Covid-19 restrictions in China continued to weigh on Starbucks’ international performance. The company’s international same-store sales fell 5%, which wasn’t as steep as the 7.1% expected decline, according to StreetAccount. Same-store sales in China, Starbucks’ second-largest market, fell 16% in the quarter.
In September, Starbucks updated its long-term forecast at its investor day, where it also presented a broad strategy to reinvent the business. The company said it now expects earnings per share growth of 15% to 20% annually over the next three years. Additionally, it’s projecting that global and U.S. same-store sales will rise 7% to 9% annually.
Starbucks said in the press release on Thursday that executives will share more detail on the fiscal 2023 forecast on the quarterly conference call.
The coffee giant reported fiscal fourth-quarter net income attributable to Starbucks of $878.3 million, or 76 cents per share, down from $1.76 billion, or $1.49 per share, a year earlier.
Excluding restructuring and impairment costs, the sale of its Russian joint venture and other items, Starbucks earned 81 cents per share.
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