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Starbucks’ revenue rose 3% to a record $8.41 billion in its fiscal fourth quarter thanks to U.S. customers who shrugged off higher prices on frothy drinks and snacks.
The Seattle coffee giant said its same-store sales __ or sales at locations open at least a year __ were up 7%. That beat Wall Street’s forecast of a 4.2% increase, according to analysts polled by FactSet.
The North American strength offset weakness in China, where pandemic lockdowns are still impacting sales. Same-store sales jumped 11% in North America, driven by a 10% increase in spending per visit.
Same-store sales in China, Starbucks’ second-largest market after the U.S., fell 16%.
Starbucks said its net income fell 50% to $878 million in the three-month period that ended Oct. 2 as it invested heavily in store remodels and employee wages. Adjusted for one-time items, the company earned 81 cents per share. That also beat Wall Street’s forecast of 72 cents.