Starbucks quarterly earnings and revenues beat Wall Street estimates
The same-store sales of the company rose by 8%. This was largely due to higher average checks, and an increase of 3% in traffic at its cafes.
Analysts' expectations were exceeded by the U.S. operations of the coffee giant.
The strong demand in the United States for more expensive drinks fueled the company's quarterly earnings and revenues, which exceeded analysts' expectations.
In premarket trading, shares of the company increased by about 6%.
Starbucks' earnings for the quarter ending Oct. 1, compared to what Wall Street expected, based upon a survey by LSEG (formerly Refinitiv), a firm that surveyed analysts:
Earnings per share: $1.06 adjusted vs. 97 cents expected
Revenue: $9.37 Billion vs. $9.29 Billion expected
The coffee giant's fiscal fourth quarter net income, attributable only to the company, was $1.22 billion or $1.06 a share. This is up from $878.3 millions or 76c per share a year ago.
The total amount of $9.37 billion grew by 11.4%.
The same-store sales of the company rose by 8%. This was largely due to higher average checks, and an increase of 3% in traffic at its cafes. StreetAccount surveyed analysts who expected a 6.8% growth in same-store sales, but the domestic locations of the company outperformed.
Starbucks has launched its Fall menu, which includes the
Pumpkin cream cold brew
The iconic pumpkin spice lattes will be available in late August. These drinks are popular and bring customers to the store while they're available.
U.S. same-store sales in North America grew by 8%. Starbucks' domestic market saw a 6% increase in the average check, and 2% growth in traffic.
The increase in same-store sales outside North America was 5% and driven by an increase in customer visits.
In China, Starbucks second largest market, same store sales increased 5%. The number of customers increased by 8% but the average ticket price fell 3%.
In China, the zero Covid policy of the Chinese government that crippled traffic caused same-store sales to plummet by 16% a year ago. China reversed this policy a few months later, however Starbucks cafes in China experienced a mixed recovery. In recent months, investor fears have affected the stock.
Starbucks announced that it will share its fiscal 2024 full-year outlook on its investor call. Investors will be updated on the company's "reinvention strategy" on Thursday in New York City.
The story is still developing. Please check back often for updates.