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
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 same-store sales growth of 11% 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.
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.