Shares of Starbucks (SBUX) are up 5% after the retail coffee chain reported better-than-expected third-quarter financial results.
The Seattle-based company announced earnings per share (EPS) of $1.06 U.S. versus $0.97 U.S. that had been forecast on Wall Street.
Revenue came in at $9.37 billion U.S. compared to $9.29 billion U.S. that had been anticipated among analysts who track the company’s progress. Revenue was up 11% from a year earlier.
Starbucks said that its same-store sales rose 8% in Q3, driven by higher prices and a 3% increase in customer traffic at its retail outlets. Analysts were expecting same-store sales growth of 6.8% for the quarter.
Starbucks launched its popular fall menu, including its bestselling pumpkin spice latte, in August of this year, which helped to drive customer traffic and push the company’s Q3 sales higher.
Outside of North America, Starbucks’ same-store sales rose 5%, driven by more customer visits.
In China, Starbucks’ second-largest market after the U.S., same-store sales rose 5%.
A year ago, same-store sales in China declined 16% as a result of the Chinese government’s zero Covid-19 crackdown that left many Starbucks stores in the country shuttered.
Starbucks said it would provide an update on its full-year guidance and progress being made with its reinvention strategy during a call with analysts and media later today (Nov. 2).
Prior to today, shares of Starbucks had risen 8% over the last 12 months to trade at $91.35 U.S. each.
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