Starbucks Net Income Rises 5% in Q1 to $855 Million

Starbucks posted net income of $855 million in its first fiscal quarter, which ended Jan. 1, up 5% from $816 million in the same period last year.

The company said, on Thursday (2) after the market closed, to have generated record revenue in the quarter, although higher costs have hurt its result.

Starbucks reported earnings per share adjusted for non-recurring items of 75 cents, below the FactSet analysts’ expectation of 77 cents.

The coffee giant posted $8.71 billion in revenue, up 8% from the same period in the previous fiscal year but slightly below analysts’ expectations of $8.79 billion. Starbucks said the effects of currency fluctuations reduced revenue by around 3%.

Same-store sales globally increased 5% year-on-year. In the Chinese market, same-store sales fell 29% compared to the same quarter of the previous fiscal year.

In the US, same-store sales at points operated by the company opened in the last 13 months rose 10%.

Price increases in the company’s North American market helped offset higher supply chain, ingredient and labor costs during the quarter, Starbucks said.

“We are publishing today’s (Thursday) strong results despite challenging global consumer and inflationary environments, a weak quarter for general retail and the unprecedented Covid-related headwinds that have unfolded in China,” said the chief executive. interim director Howard Schultz in a statement.