Glass art at a Starbucks store in Tokyo.
Jakub Borzycki | Noor Photo | Getty Images
Starbucks McDonald's Corp. reported quarterly revenue Tuesday that fell short of analysts' expectations, as its U.S. and international cafes faced weaker demand.
The company's shares rose more than 1% in extended trading.
Here's what the company reported compared to what Wall Street was expecting, based on a poll of analysts conducted by LSEG:
Earnings per share: 93 cents adjusted vs. 93 cents expectedRevenue: $9.11 billion vs. $9.24 billion expected
The coffee giant reported third-quarter net income attributable to the company of $1.05 billion, or 93 cents per share, down from $1.14 billion, or 99 cents per share, a year earlier.
Excluding items, Starbucks earned 93 cents per share.
Net sales fell 1% to $9.11 billion. The company's same-store sales fell 3% in the quarter, driven by a 5% decline in transactions.
Traffic to its U.S. stores fell again this quarter, down 6%. Domestic same-store sales fell 2%, helped by an increase in average tickets. Last quarter, executives discussed plans to revive the struggling U.S. business that included relying on discounts and new drinks to lure back customers who had abandoned the chain.
Outside North America, same-store sales fell 7%. In China, Starbucks’ second-largest market, same-store sales fell 14% as average tickets and transactions shrank. Starbucks has faced stiffer competition in China from local coffee shops that are cutting prices.
Starbucks opened a net 526 new stores in the quarter.
The company will discuss its outlook for fiscal 2024 on its upcoming conference call. Last quarter, Starbucks lowered its outlook, expecting revenue growth in the low single digits and earnings per share growth in the flat to low single digits range.
