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Starbucks Q3 Earnings Highlights: Revenue Beats Estimates And Hits Record, China Sales Bounce Back And More

Published 01/08/2023, 21:22
Updated 01/08/2023, 22:40
Starbucks Q3 Earnings Highlights: Revenue Beats Estimates And Hits Record, China Sales Bounce Back And More

Benzinga - Coffee company Starbucks Corporation (NASDAQ: SBUX) reported third-quarter financial results after the market close Tuesday. Here are the key highlights.

What Happened: Starbucks reported third-quarter revenue of $9.17 billion, which was up 12% year-over-year. The revenue total, which was a record, missed a Street consensus estimate of $9.29 billion, according to data from Benzinga Pro.

The company reported earnings per share of $1 for the third quarter, which beat a Street consensus estimate of 95 cents per share.

Same store sales were up 10% year-over-year, with the North America segment up 7% year-over-year and the international segment up 24% year-over-year. The company said China same store sales were up 46% year-over-year within the international segment.

The company saw revenue of $6.74 billion in the North America segment, which was up 11% year-over-year. International segment revenue was $1.97 billion, which was up 24% year-over-year.

Starbucks opened 588 net new stores in the third quarter and passed the 37,000 unit count globally. The company ended the quarter with 37,222 stores, made up of 51% company-owned and 49% licensed stores. Store counts were 17,592 units in North America and 19,630 internationally.

The company ended the quarter with 31.4 million members for the U.S. rewards program, which was up 15% year-over-year.

"Our strong third quarter results point to all-around momentum in the business, and reflect the significant progress we are making against our Reinvention Plan. Our results were also amplified by the distinctive competitive advantages that set us apart in the market," Starbucks CEO Laxman Narasimhan said.

"Starbucks is an iconic, durable brand and I am confident in the multiple paths available for the company to drive significant growth and margin improvement, which position us well to create outsized long-term shareholder value.

Related Link: Trading Strategies For Starbucks Stock After Q3 Earnings

What’s Next: Starbucks said it will share updated guidance during its third-quarter call.

"The momentum we have built and strength we are seeing globally, gives us the confidence and optimism to close our fiscal year strong," Starbucks Chief Financial Officer Rachel Ruggeri said.

SBUX Price Action: Starbucks shares are trading slightly higher to $101.55 in after-hours trading at the time of writing, versus a 52-week trading range of $81.68 to $115.48.

Read Next: How To Earn $500 From Starbucks Stock

Photo via Shutterstock.

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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