• Starbucks (NASDAQ:SBUX) stock moved 0.31 per cent lower early Wednesday despite posting record financial results
  • Investors were skeptical after the coffee giant recorded the strongest average weekly sales in its history during Q3 2023, but its domestic sales slowed down
  • Global comparable store sales increased 10 per cent, North America and U.S. comparable store sales increased 7 per cent, while international comparable store sales increased 24 per cent, with China seeing a noteworthy 46 per cent increase
  • Starbucks Corp. opened trading at US$101.26 per share

Starbucks (NASDAQ:SBUX) stock moved 1.07 per cent lower early Wednesday despite posting record financial results.

Investors were skeptical after the coffee giant recorded the strongest average weekly sales in its history during Q3 2023, but its domestic sales slowed down.

Adjusted earnings per share were US$1.00, higher than the expected $0.95.

Revenue increased 12 per cent to a record US$9.2 billion, short of analyst estimates of US$9.3 billion. Same-store sales also came up short at 10 per cent, compared with a forecast 11.12 per cent increase. Operating income increased to US$1.5 billion in Q3 2023 compared with US$1.3 billion in Q3 2022.

Global comparable store sales increased 10 per cent, North America and U.S. comparable store sales increased 7 per cent, while international comparable store sales increased 24 per cent, with China seeing a noteworthy 46 per cent increase.

Sales in China took most of the attention, up 46 per cent, though the average ticket size was down by 1 per cent. The U.S. and China now make up 61 per cent of Starbucks’ portfolio (16,144 and 6,480 stores). 588 new stores were opened under the Starbucks label in Q3 2023.

Starbucks Chief Financial Officer Rachel Ruggeri said in a news release the company delivered earnings growth of 19 per cent, well above revenue growth of 12 per cent.

“The momentum we have built and strength we are seeing globally, gives us the confidence and optimism to close our fiscal year strong.”

For fiscal year 2023, Starbucks now expects earnings growth of 16 per cent to 17 per cent, up from a previous fiscal year guidance range of 15 per cent to 20 per cent. 

Despite the recent slide, the Seattle-based company’s stock is up 16 per cent since this time last year.

Starbucks Corp. is a coffee roaster with 37,222 stores worldwide.

Starbucks Corp. opened trading at US$101.26 per share.

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