Starbucks on Thursday reported quarterly earnings and revenue that topped analysts’ expectations, fueled by strong U.S. demand for pricier drinks.
Shares of the company rose about 6% in premarket trading.
Here’s what Starbucks reported for the quarter ended Oct. 1 compared with what Wall Street was expecting, based on a survey of analysts by LSEG, formerly known as Refinitiv:
- Earnings per share: $1.06 vs. 97 cents expected
- Revenue: $9.37 billion vs. $9.29 billion expected
The coffee giant reported fiscal fourth-quarter net income attributable to the company of $1.22 billion, or $1.06 per share, up from $878.3 million, or 76 cents per share, a year earlier.
Net sales climbed 11.4% to $9.37 billion.
The company’s same-store sales rose 8%, fueled by higher average checks and a 3% increase in customer traffic to its cafes. Analysts surveyed by StreetAccount were expecting same-store sales growth of 6.8%, but the company’s domestic locations outperformed.
Starbucks launched its fall menu, including the pumpkin cream cold brew and iconic pumpkin spice latte, in late August. With a legion of dedicated fans, those drinks typically drive customers to its locations while they are available.
U.S. and North American same-store sales grew 8%. The average check in Starbucks’ home market rose 6%, while traffic ticked up 2%.
Outside North America, same-store sales increased 5%, driven entirely by more customer visits.
And in China, Starbucks’ second-largest market, same-store sales rose 5%. Customer traffic increased 8%, but average ticket fell 3%.
A year ago, same-store sales in China plunged 16% as a result of the Chinese government’s zero Covid policy that hamstrung traffic. China rolled back that policy several months later, but Starbucks’ cafes there faced an uneven recovery. Investor fears about the market have weighed on the stock in recent months.
Starbucks said it would share its full-year outlook for fiscal 2024 on its investor conference call. The company will also be giving an update on its “reinvention” strategy to investors on Thursday afternoon in New York City.
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