Starbucks reported record revenue in its fiscal third quarter as its China business roared back to life.
Same-store sales — or sales at stores open at least a year — jumped 46% in China, reversing last year's declines due to COVID infections.
Still, the company's results were mixed for the 13 weeks ending July 2. While its earnings surpassed Wall Street's forecast, its sales were lower than expected.
Starbucks shares were down 1% in after-market trading Tuesday.
The Seattle-based coffee giant said its revenue rose 12% to $9.2 billion in the quarter. Analysts had expected revenue of $9.3 billion, according to FactSet.
Starbucks' overall same-store sales increase of 10% was also lower than Wall Street's forecast of 11%.
North American same-store sales rose 7% for the quarter. That was largely due to higher prices and customers ordering more items per visit; customer traffic was up just 1%.
Starbucks said its net income rose 25% to $1.1 billion, or 99 cents per share. Excluding restructuring costs, the company earned $1 per share. That was higher than the 95 cents analysts forecast.
