Starbucks Bucks the Trend

Starbucks Bucks the Trend

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  • Starbucks reported its quarterly earnings and revenue yesterday that topped analysts’ expectations, fueled by strong U.S. demand for pricier drinks. Shares of the company rose 10% in morning trading. Starbucks reported an EPS of $1.06 vs. 97 cents expected for its fiscal fourth quarter on revenue of $9.37 billion vs. $9.29 billion expected. Net sales climbed 11.4% to $9.37 billion.
  • The company’s same-store sales rose 8%, fueled by higher average checks and a 3% increase in customer traffic to its cafes. Analysts surveyed by StreetAccount were expecting same-store sales growth of 6.8%, but the company’s domestic locations outperformed.

Why it matters

Starbucks has benefited from a younger, more affluent consumer base despite the wider U.S. restaurant industry grappling with a slowdown as sticky inflation prompts people to rethink dining out. These are signs of a loyal customer base for a loyal brand. 

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