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Starbucks managed to boost its second-quarter revenue and profit, although the company continues to deal with the impact of the coronavirus lockdown in China and inflation.
The coffee chain operator’s revenue grew 15% to $7.64 billion in the three months ended April 3, a record for the second quarter, and more than $400 million above estimates by the company. Wall Street. Net income rose 2.3% more than a year ago to $675 million, or 58 cents a share, roughly matching analyst expectations.
Global equivalent sales increased 7%. That was helped by an increase in transactions and a higher average spend per ticket, but the overall number did not match market forecasts. Its North American and US markets had a strong run, but international sales growth slowed, resulting in a 23% drop in sales at comparable stores in China.
New travel restrictions and lockdowns in China to combat the country’s latest wave of coronavirus hit Starbucks’ first-quarter results, driven by inflationary pressures. The company acknowledged on Tuesday that challenges continued into the second quarter.
Howard Schultz, the coffee chain’s founder, who returned as interim chief executive officer, said the company is “fully focused on enhancing our core business in the United States.”
He said that due to “record demand” and changes in customer behavior, Starbucks is accelerating its store growth plans, including adding more drive-in programs and speeding up programs. Renovations.
“The investments we are making in our people and company will add the capacity we need in our US stores today and position us against the growth curve to come, ” he said in a statement on Tuesday.