Starbucks Demurs on Misses

Starbucks (NASDAQ:SBUX) shares lost some of their spark, after the coffee chain missed estimates on the top and bottom lines for its December quarter, hurt by a slowdown in China.

Global comparable store sales increased 5%, primarily driven by a 7% increase in average ticket, partially offset by a 2% decline in comparable transactions.

North America and U.S. comparable store sales increased 10%, driven by a 9% increase in average ticket and a 1% increase in comparable transactions.

International comparable store sales decreased 13%, driven by a 12% decline in comparable transactions and a 1% decline in average ticket; China comparable store sales decreased 29%, driven by a 28% decline in comparable transactions and a 1% decline in average ticket

GAAP earnings per share of $0.74 grew 7% over prior year, including an estimated $0.06 of dilutive impact from China

Starbucks Rewards loyalty program 90-day active members in the U.S. increased to 30.4 million, up 15% year-over-year

Said Interim CEO Howard Schultz, “Starbucks performance in Q1 demonstrates the strength and resilience of our business and accelerating demand for Starbucks Coffee all around the world. We posted today's strong results despite challenging global consumer and inflationary environments, a soft quarter for retail overall and the unprecedented, COVID-related headwinds that unfolded in China in Q1.”

SBUX shares dumped $3.35, or 3.1%, to $105.80.