Starbucks misses quarterly sales estimates as demand wavers
- Web Desk
- Aug 02, 2023
WASHINGTON, (Reuters): Starbucks (SBUX.O) missed market expectations for quarterly comparable sales on Tuesday, signaling dull demand for its coffees and cold drinks both in the North American and international markets.
Shares of the Seattle, Washington-based company fell more than 2 per cent in extended trading.
While Starbucks has rushed to cash in on its younger, wealthier customer base by launching new drinks in the US, including a Chocolate Java Mint Frappuccino and White Chocolate Macadamia Cream Cold Brew in May this year, it saw quarterly transactions climb just 1 per cent in North America.
However, the company recorded a sharp recovery in China, with comparable sales surging 46 per cent even as average ticket – or the average amount spent per customer on a visit – declined 1 per cent in the quarter.
Global comparable sales at Starbucks rose 10 per cent in the third quarter, compared with analysts’ expectations for a 11.8 per cent rise, according to Refinitiv IBES data.
In its international segment, same-store sales rose 24 per cent, also missing estimates of 25.7 per cent.
Excluding items, Starbucks posted a profit of $1 per share. Analysts on average were expecting earnings of 95 cents.