Starbucks Q2 results top expectations

Starbucks has reported better-than-expected results for its second quarter, thanks to an uptick in China and its core North American market. The coffee giant’s EPS came in at $0.74, with revenue hitting $8.7bn, beating analysts’ estimates of $0.65 and $8.4bn respectively, according to figures compiled by Investing.com. Comparable store sales rose by 11%, boosted by a 6% increase in transactions and a 4% increase in the average ticket.

In North America, Starbucks reported that comparable store sales rose by 12%, while international comparable store sales increased by 7%. In China, the second largest market for the coffee chain, comparable store sales grew by 3% year-on-year in Q2 after a 29% slump in Q1, when the country was still enforcing its zero-Covid policy.

The surge in sales was largely driven by a rebound in the company’s Chinese market after the relaxation of the government’s Covid-19 restrictions. However, the earnings report showed that global same-store sales were lower than pre-pandemic levels. Starbucks shares fell by 2.5% in after-hours trading following the report.

Starbucks plans to open 22,000 new stores over the next decade, with half of them in the US and China. The company’s sustainability efforts are also gaining attention. Its Starbucks Greener Stores initiative has helped to reduce energy and water consumption, as well as waste production.