Starbucks Corp (NASDAQ:SBUX) shares rose over 4% in early trading on Wednesday despite the global coffee shop chain lowering its outlook after the past quarter disappointed on sales and profits.
Revenue for the past quarter, the first in its 2024 fiscal year, grew 8% year over year to $9.4 billion, which was short of the average Wall Street forecast of $9.6 billion.
US like-for-like store sales grew 5%, with foot traffic up 1% and average customer payments rising 4%. International comparable sales increased 7% as growth in transaction numbers was only partly offset by lower 'tickets'.
Adjusted earnings per share frothed up 20% to $0.90, while analysts had estimated they would come in at $0.93.
The company had 38,587 stores around the world at the end of December, having opened 549 net in the quarter.
Shares in the Seattle-based group had fallen 20% from the two-year peaks reached last May as investors feared the impact of a new pay deal for increasingly unionised workers.
Management has lowered their guidance for 2024 revenue growth to 7-10%, down from the previous range of 10-12%, but earnings growth guidance remains the same at 15-20%.
CEO Laxman Narasimhan said: “Despite headwinds, our brand is very strong, and that coupled with innovation and a relentless focus on our green apron partners form long-term differentiators, along with focused execution on Triple Shot Reinvention, will drive balanced and attractive earnings growth.”