Starbucks U.S. Comparable Sales Jumped 7%, China Sales Rebounded

Scott Peters
U.S.A. New York City
Aug 6, 2023

• Starbucks reported rising sales and earnings after average ticket price and number of transactions rose in the U.S. China sales rebounded following the ending of Covid restrictions.

Starbucks Corp increased 0.8% to $102.03 after the coffee chain operator reported higher-than-expected sales in the fiscal third quarter on a sales rebound in China. 

Sales at stores open at least 13 months in China soared 46% from a year ago, after Covid-restrictions ended. 

Global comparable store sales increased 10% and the U.S. and North American comparable store sales increased 7% from a year ago. 

Revenue in the quarter ending on July 2 rose 12% to $9.2 billion and  the company opened 588 net new stores in the quarter, increasing the worldwide total to 37,000. 

Net earnings attributable to shareholders increased to $1.1 billion from $913 million and diluted earnings per share rose to 99 cents from 79 cents a year ago. 

China is expected to drive future sales growth as the company pushes to open more stores in smaller cities of the nation with 1.4 billion people with a preferred hot beverage tea over coffee. 

At the end of the third quarter, stores in the U.S. and China comprised 61% of the company’s global portfolio, with 16,144 and 6,480 stores in the U.S. and China, respectively.