Starbucks Stock Is Cooling Off After Hours: What's Going On?

Starbucks Corp SBUX shares are trading lower in Thursday's after-hours session after the company reported worse-than-expected financial results.

What Happened: Starbucks said fiscal first-quarter revenue was up 8% year-over-year to $8.71 billion, which missed average analyst estimates of $8.78 billion, according to Benzinga Pro. The company reported quarterly adjusted earnings of 75 cents per share, which missed average estimates of 77 cents per share. 

Starbucks said comparable store sales were up 5% globally and up 10% in the U.S. on a year-over-year basis. Excluding China, international comps were up double digits. 

China's comparable store sales decreased by 29%, driven by a 28% decline in comparable transactions and a 1% decline in average ticket. 

First-quarter active U.S. Starbucks rewards memberships reached 30.4 million in the quarter, up 15% year-over-year and up 6% sequentially. 

"Starbucks performance in Q1 demonstrates the strength and resilience of our business and accelerating demand for Starbucks Coffee all around the world," said Howard Schultz, interim CEO of Starbucks. 

"We posted today's strong results despite challenging global consumer and inflationary environments, a soft quarter for retail overall and the unprecedented, COVID-related headwinds that unfolded in China in Q1."

Starbucks reaffirmed its full-year guidance for 2023. The company said it will discuss its 2023 financial targets during the earnings conference call starting at 5 p.m. ET.

See Also: After-Hours Alert: Why Alphabet Stock Is Diving

SBUX Price Action: Starbucks has a 52-week high of $110.78 and a 52-week low of $68.39.

The stock was down 3.8% in after-hours at $105 at the time of publication, according to Benzinga Pro.

Photo: Şahin Sezer Dinçer from Pixabay.

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