Starbucks misses sales, revenue estimates as China falters

Starbucks reported lower-than-expected sales in its fiscal first quarter, with COVID store shutdowns in China overshadowing stronger results elsewhere.

Global same-store sales — or sales at stores open at least a year — were up 5% in the October-December period, but that was partly due to higher prices. Store transactions were down 2%. Analysts polled by FactSet had forecast a 6.7% increase in same-store sales.

During a conference call with investors, Starbucks' interim CEO Howard Schultz said China's decision to end its zero-COVID policy in December caused a spike in infections that closed nearly 30% of Starbucks' 6,000 stores at its peak. Same-store sales plunged 29%.