Starbucks Experiences “Better than Expected” Quarter

No price is too high for coffee.

Starbucks’ fiscal fourth-quarter earnings beat expectations while navigating “higher prices, ongoing unionization efforts, COVID-19 lockdowns in China, and more,” according to Yahoo Finance. 

The earnings and revenue topped analysts’ estimates because customers complied with the hike in Starbucks’ higher prices. 

CNBC reported, “Net sales for the period rose 3.3% to $8.41 billion. Global same-store sales increased 7%, fueled by increased spending in its home market.” Additionally, “In the United States, Starbucks reported same-store sales growth of 11%, which was the result of people spending more on average and a slight uptick in traffic. Prices were also up 6% from a year ago, but executives said they don’t plan to raise prices anymore for the time being.” 

CNBC also reported that cold drinks were responsible for more than three-quarters of beverage sales at U.S. company-owned locations. Meanwhile, the fall seasonal favorite, Pumpkin Spice Latte sales increased 70% from last year’s period, Starbucks North American President, Sara Trilling, said. 

Starbucks’ much anticipated holiday drinks and cups officially returned to the menu on Nov. 3.