Operations

US Starbucks earnings holding steady, international sales drop

provided

May 3, 2022

Starbucks reported Tuesday that its U.S. same-store sales were up 12%, which beat Wall Street expectations of nearly 9%, but revenue and earnings per share came in just a bit below expectations. Revenue was $7.6 billion versus the $7.62 billion expected, and adjusted earnings per share was 59 cents compared to 60 cents. The news wasn't as good for international same-store sales, however, which ended -8 % versus the 1.87% that was expected.

Sales in China decreased 23%, driven by a 20% decline in comparable transactions and a 4% decline in average ticket sales, said CEO Howard Schultz, who blamed a rise in COVID-19 cases and government shutdowns.

"We are single-mindedly focused on enhancing our core U.S. business through our partner, customer and store experiences," Schultz said in a company press release. "Given record demand and changes in customer behavior we are accelerating our store growth plans, primarily adding high-returning drive-thrus, and accelerating renovation programs so we can better meet demand and serve our customers where they are."