Starbucks (SBUX) -) posted stronger-than-expected third quarter earnings Tuesday, but missed Street revenue forecasts as North American sales were muted amid price hikes and a pullback in consumer discretionary spending.
Starbucks said non-GAAP earnings for the three months ending in June, the group's fiscal third quarter, rose 19% from last year to $1.00 per share, topping the Street consensus forecast of 95 cents per share.
Group revenues, Starbucks said, were up 12.9% to a record $9.2 billion, but the figure was just shy of analysts' estimates of a $9.29 billion tally. North America comparable sales were up 7% from last year, Starbucks said, while comps in China surged 46% from last year's Covid-hit period.
Globally, same store sales were up 10%, just shy of the Street consensus forecast of an 11% gain.
“Our strong third quarter results point to all-around momentum in the business, and reflect the significant progress we are making against our Reinvention Plan," said new CEO Laxman Narasimhan. "Our results were also amplified by the distinctive competitive advantages that set us apart in the market."
“Starbucks is an iconic, durable brand and I am confident in the multiple paths available for the company to drive significant growth and margin improvement, which position us well to create outsized long-term shareholder value,” Narasimhan added.
Starbucks shares were marked 1.2% lower in after-hours trading immediately following the earnings release to indicate a Wednesday opening bell price of $100.04 each.
