Starbucks on Thursday reported quarterly earnings and revenue that topped analysts’ expectations, fueled by strong U.S. demand for its pricier drinks.
Shares of the company rose more than 7% in premarket trading.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG, formerly known as Refinitiv:
- Earnings per share: $1.06 adjusted 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.
U.S. and North American same-store sales grew 8%. 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.
In China, Starbucks’ second-largest market, same-store sales rose 5%. Customer traffic increased 8%, but average ticket fell 3%.
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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