Starbucks Corporation (NASDAQ:SBUX) shares rose more than 2% on Wednesday after the company reported mixed fiscal third-quarter results, with earnings meeting expectations but revenue falling short due to weaker sales in China.
The company posted earnings of $0.93 per share on revenue of $9.1 billion, matching the analyst consensus for EPS but missing the revenue estimate of $9.25 billion.
The revenue miss was primarily attributed to ongoing economic challenges in China, a crucial market for Starbucks, which continued to impact consumer spending.
Global comparable store sales dropped 3%, missing the forecasted 2.7% decline. In North America, comparable store sales decreased by 2%, although price increases helped mitigate the decline.
In China, comparable store sales plummeted 14%, driven by a 7% decrease in both average ticket size and comparable transactions.