Starbucks reported fiscal third-quarter earnings that surpassed Street expectations but its revenue and same-store sales disappointed.
The coffee titan posted revenue of $9.17 billion, up 12% year-over-year but short of analyst projections of $9.29 billion. Earnings were $1 per share, up 19% from 2022 and beating expectations of $0.95.
Starbucks shares slid 0.8% to $100.50 in after-hours trading.
Same-store sales grew 10%, less than the StreetAccount projection of 11%. North American same-store sales improved by 7%, failing to meet estimates of 8.5%. Customer traffic grew by 1%.
Outside North America, same-store sales jumped 24%, narrowing missing expectations of 24.2%. Same-store sales in China surged 46% in the quarter.
Looking ahead, Starbucks said it would discuss its guidance during its earnings call. The company previously projected fiscal 2023 revenue growth between 10% and 12% with adjusted earnings per share growth on the low end of a 15% to 20% range.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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