Starbucks on Thursday reported record quarterly sales thanks to its robust U.S. business that helped make up for weakness in China and other markets.
The Seattle coffee giant said its North American same-store sales — or sales at locations open at least a year — jumped 22% in the July-September period.
But same-store sales in China fell 7% as coronavirus cases once again disrupted store traffic. Earlier this week, McDonald’s also reported lower same-store sales in China due to COVID cases and a softening economy.
Globally, Starbucks' same-store sales rose 17%, shy of Wall Street's forecast of an 18.2% increase, according to analysts polled by FactSet.
Starbucks said its revenue rose 31% to $8.1 billion for the quarter, an all-time high. But that was still short of Wall Street’s forecast of $8.2 billion.
The company said its net income more than quadrupled to $1.76 billion. Adjusted for one-time items, Starbucks reported earnings of $1.00 per share. That beat Wall Street’s forecast of 99 cents.
Starbucks shares fell 3.5% in after-market trading.
Starbucks reported its earnings one day after it announced pay hikes for U.S. workers. The company said workers in its U.S. stores will make at least $15 — and up to $23 — per hour by next summer. Starbucks is also giving raises to employees who have been with the company for at least two years.
Starbucks President and CEO Kevin Johnson said the company's strong sales momentum and increased operating efficiency will help fund that investment in its workers.