Starbucks Corp (NASDAQ:SBUX) outperformed Wall Street’s expectations for both profit and sales when it reported its results for the second quarter fiscal 2023 after the closing bell on Tuesday.
For the quarter ended April 2, 2023, the Seattle-based coffee chain reported a 25% year-over-year jump in adjusted earnings per share to $0.74, above the expected $0.64.
Revenue was up 14% from the year-ago quarter at $8.7 billion, above the forecast of $8.39 billion.
Starbucks' North America revenue grew 17% from the same period last year to $6.4 billion, while international revenue was up 9% to $1.9 billion.
Global same-store sales increased 11% during 2Q, with a 6% increase in comparable transactions and a 4% increase in the average ticket.
The coffee chain's performance in China, which was being eyed by investors with the lifting of COVID-19 restrictions in the country starting in January, was also better than expected.
Its China revenue grew 3% and its store count rose 10% year-over-year. Same-store sales were up 3%, compared to a 23% drop in the second quarter of 2022.
Wall Street analysts had been expecting an almost 10% decline in China same-store sales during 2Q.
The results, however, apparently left investors with a bitter taste in their mouths as Starbucks’ shares slipped 1.5% to US$112.75 in after-hours trading.
Contact the author at emily.jarvie@proactiveinvestors.com
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