Starbucks surpasses earnings, revenue estimates

Starbucks on Tuesday reported better-than-expected quarterly earnings and revenue, despite lockdowns in China weighing on its performance.

Shares of Starbucks have fallen 27% this year, dragging its market value down to $98.37 billion. The coffee giant suspended its fiscal 2022 outlook last quarter, citing the uncertainty caused by Covid lockdowns in China.

Net sales rose 9% to $8.15 billion. The company reported global same-store sales growth of 3%, fueled by a strong performance in the United States.

Outside the US, same-store sales fell 18%, weighed down by plummeting demand in China. The country, which is Starbucks’ second-largest market, spent two-thirds of the quarter under restrictions to curb the spread of Covid. As a result, China’s same-store sales plunged 44%. The company is still seeing periodic short-term closures in China.

Last quarter, Starbucks pulled its outlook for fiscal 2022, citing the uncertainty caused by Covid outbreaks in China. The company did not issue a new forecast this quarter. Starbucks opened 318 new locations worldwide during the quarter, bringing its global restaurant count to 34,948.