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.
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.