Starbucks reported record revenue in its fiscal third quarter as its China business roared back to life.
Same-store sales—or sales at stores open at least a year—jumped 46% in China, reversing last year’s declines due to COVID-19 infections.
Still, the company’s results were mixed for the 13 weeks ending July 2. While its earnings surpassed Wall Street’s forecast, its sales were lower than expected.
Starbucks shares were down 1% in after-market trading Tuesday.
The Seattle-based coffee giant said its revenue rose 12% to $9.2 billion in the quarter. Analysts had expected revenue of $9.3 billion, according to FactSet.
Starbucks’ overall same-store sales increase of 10% was also lower than Wall Street’s forecast of 11%.
North American same-store sales rose 7% for the quarter. That was largely due to higher prices and customers ordering more items per visit; customer traffic was up just 1%.
Starbucks said its net income rose 25% to $1.1 billion, or 99 cents per share. Excluding restructuring costs, the company earned $1 per share. That was higher than the 95 cents analysts forecast.
—Dee-Ann Durbin, Associated Press
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