Starbucks (SBUX) Q4 2022 earnings beat estimates

Starbucks on Thursday reported quarterly earnings and revenue that topped analysts’ estimates, fueled by U.S. customers spending more on their orders.

Here’s what the company reported for the quarter ended Oct. 2 compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

• Earnings per share: 81 cents adjusted vs. 72 cents expected
• Revenue: $8.41 billion vs. $8.31 billion expected

Net sales rose 3.3% to $8.41 billion. Global same-store sales increased 7%, fueled by increased spending in its home market.

In the United States, Starbucks reported same-store sales growth of 11%, which was the result of people spending more on average and a slight uptick in traffic. Its loyalty program saw its active membership climb 16% to 28.7 million people in the quarter. 

Outside the U.S., lockdowns in China continued to weigh on Starbucks’ international performance. The company’s international same-store sales fell 5%, better than StreetAccount estimates of 7.1% declines. Same-store sales in China, Starbucks’ second-largest market, shrank 16% in the quarter. 

In September, Starbucks updated its long-term forecast at its investor day, where it also presented a broad strategy to reinvent the business. The company said it now expects earnings per share growth of 15% to 20% annually over the next three years. Additionally, it’s projecting that global and U.S. same-store sales will rise 7% to 9% annually. Starbucks said in the press release on Thursday that executives will share more detail on the fiscal 2023 forecast on the quarterly conference call.

The coffee giant reported fiscal fourth-quarter net income attributable to Starbucks of $878.3 million, or 76 cents per share, down from $1.76 billion, or $1.49 per share, a year earlier.

Excluding restructuring and impairment costs, the sale of its Russian joint venture and other items, Starbucks earned 81 cents per share.