Starbucks posts record quarterly sales while Chinese stores feel Covid side effects
Starbucks shares were elevated on Wednesday after the coffee chain posted record quarterly revenue.
However, the US giant said its bottom line had been impacted by inflationary cost pressures and higher wages.
It surpasses sales expectations, posting third quarter sales topping $8.2bn, ahead of analysts’ bets of $8.1bn.
Roaring sales in the chain’s largest market the US were offset by a hit to revenue in China, its second-largest market.
Sales in China fell 44 per cent on a same-store basis in the period, driving an 18 per cent drop in international sales. Store sales in the US were boosted nine per cent, primarily boosted by higher average order sales.
“We delivered record-breaking revenue performance during the quarter from continued strength in customer demand globally, balanced with our ability to execute investments despite macroeconomic and operational headwinds,” according to Rachel Ruggeri, chief financial officer.
The corporation’s former chief executive officer Howard Schultz returned to take the reins for the third time this year.
Following the company’s results, Schultz said the current leadership had a “clear line-of-sight on what we need to do to reinvent the company.”
It comes as around 200 Starbucks stores in the US have unionised so far, with members calling for wage increases.