Starbucks’ demand for its cold coffee products in the United States helped the company post better-than-expected quarterly earnings and revenue.
Interim CEO Howard Schultz claimed that the retailer is not seeing customers cut back on purchases or lower their spending as inflation soars.
Schultz attributed Starbucks’ ability to resist the trend to its pricing clout and dedicated customer base. The coffee major announced a net income attributable to Starbucks for the third quarter of its fiscal year of $912.9 million, or 79 cents per share, down from $1.15 billion, or 97 cents per share, at the same time last year.
The business claimed that this quarter’s profitability was negatively impacted by inflation and rising barista pay. The net sales increased by 9%, clocking at $8.15 billion. The company reported a 3% increase in same-store sales worldwide, driven mostly by improved results in the United States.
Same-store sales in Starbucks’ home market climbed by 9%, mostly due to higher average order values and a 1% increase in traffic.