What Happened
Starbucks reported second-quarter revenue of $7.64 billion, which was up 15 percent year-over-year. The quarterly revenue was a second-quarter record for the company and came in ahead of a consensus estimate of $7.6 billion, according to data from Benzinga Pro.The company reported second-quarter adjusted earnings per share of 59 cents, which was in line with estimates.
Same-store sales were up 7 percent globally, with a 12 percent increase in North America and a decline of 8 percent in international markets. Comparable same-store sales fell 23 percent in China due to a drop in overall transactions from increased COVID-19 related lockdowns.
The company opened 313 net new stores in the second quarter. Starbucks ended the second quarter with 34,630 stores globally, with a split of 51 percent company-owned and 49 percent licensed.
The company reported 16,962 North American stores and 17,704 international stores to end the second quarter. Stores in the U.S. and China represented 61 percent of the company’s global store count.
Starbucks saw its reward membership program hit 26.7 million members in the U.S. in the second quarter, up 17 percent year-over-year.
What’s Next
Starbucks mentioned lockdowns in China and higher inflation in the second quarter, which could continue to be trends moving forward.The company said it would give an update to full year guidance on its quarterly earnings call, set for later Tuesday.
“We are accelerating our store grown plans, primarily adding high-returning drive-thrus, and accelerating renovation programs,” Shultz said.
