Starbucks’ revenue fell 1% in the April-June period as customer traffic weakened in the U.S. and China.
The Seattle coffee giant on Tuesday reported revenue of $9.1 billion for its fiscal third quarter. That was lower than the $9.2 billion Wall Street anticipated, according to analysts polled by FactSet.
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Starbucks said global same-store sales – or sales at locations open at least a year – fell 3%. Analysts had expected a 2.7% drop.
In China, where Starbucks is feeling pressure from lower-priced rivals, same-store sales plunged 14%. Chinese customers visited less often and spent less per visit, Starbucks said.
In the U.S., same-store sales fell 2%. Starbucks said higher spending per visit helped offset a slowdown in traffic. But the company pointed out some positive signs, including a 7% increase in U.S. loyalty members during the quarter.
Starbucks said its net income fell 7.6% to $1.05 billion, or 93 cents per share. That was in line with analysts' forecasts.
Starbucks isn't the only chain seeing a slowdown in purchases by inflation-weary consumers.
McDonald’s said earlier this week that its same-store sales fell 1% in the April-June period, the first decline since the final quarter of 2020. McDonald's also noted weakness in China as well as the U.S.
Starbucks shares rose 1% in after-hours trading Tuesday.