Starbucks (SBUX) Earnings Q2 2022

A passer-by carries a Starbucks signature cup in San Francisco, California, USA on Thursday, April 28, 2022. Starbucks Corp.

David Paul Morris | Bloomberg | Getty Images

On Tuesday, Starbucks reported quarterly revenue that beat analysts’ expectations as sales growth in the US offset a sharp drop in China.

Shares rose less than 1% on the extended trading report.

Here’s what the company said compared to what Wall Street expected, based on a survey of analysts at Refinitiv:

  • Earnings per share: 59 cents adjusted, in line with expectations
  • Revenue: $7.64 billion vs. $7.6 billion expected

The coffee giant reported Starbucks’ fiscal second-quarter net income of $674.5 million, or 58 cents per share, up from $659.4 million, or 56 cents per share, a year earlier.

Excluding merchandise, Starbucks earned 59 cents a share, in line with estimates by analysts polled by Refinitiv.

Net sales rose 14.5% to $7.64 billion, beating expectations of $7.6 billion. Global same-store sales rose 7% QoQ, driven by strong growth in the US.

US same-store sales increased 12% as shoppers spent more on each order and visited more often. Active participation in the Starbucks loyalty program jumped 17% to 26.7 million customers.

Outside the US, it was a dark quarter for Starbucks. International same-store sales fell 8% due to a sharp downturn in China, the company’s second-largest market. Sales at Chinese stores fell 23% in the quarter as the country reintroduced lockdowns following the Covid outbreak.

The company also said on its earnings call that it will announce investments in its employees, stores and brand, and will share its financial targets for fiscal year 2022 during a conference call with analysts. The company said last quarter that it expects GAAP earnings per share to fall in the range of 4% to 6% and adjusted earnings per share to rise 8% to 10% during the fiscal year.

Starbucks opened 313 new locations in the quarter.

Read the full earnings report here.

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