From CNBC:

Starbucks is facing supply shortages at some of its coffee shops due to problems in the supply chain. The company reported quarterly earnings and revenue that missed Wall Street’s expectations, with domestic and international sales falling short of estimates. Despite “headwinds,” CEO Laxman Narasimhan stated that the brand remains strong, and shares initially fell in extended trading but recovered, rising about 2%.

In its fiscal first quarter, the coffee giant reported net income of $1.02 billion, or 90 cents per share, up from $855.2 million, or 74 cents per share, a year earlier. Excluding restructuring costs and other items, Starbucks earned 90 cents per share, with net sales rising 8% to $9.4 billion. Global same-store sales increased 5%, falling short of StreetAccount estimates of 7.2%. In North America, same-store sales also rose 5%, driven largely by customers spending more on their drinks and food.

Starbucks’ fiscal first quarter encompasses the all-important holiday season, during which the chain usually nets billions of dollars in gift card sales, plus higher traffic fueled by its seasonal drink offerings and thirsty shoppers. Outside of Starbucks’ home market, the coffee chain reported international same-store sales growth of 7%, missing expectations of 13.2%. China, the company’s second-largest market, reported same-store sales growth of 10%, but the average ticket at its Chinese stores fell 9%.

Starbucks has seen increased competition from lower-priced rivals like Luckin Coffee, which have won over consumers as China’s economic recovery continues to lag.



Read more: Starbucks (SBUX) Q1 2024 earnings