Starbucks' surprise China sales drop drags profits below estimates

Global brands with significant exposure to China are under the microscope as investors worry about the lingering financial impact of the pandemic there.

Seattle, Washington-based Starbucks does not have "clear line of sight into the timing of recovery" and believes negative sales will continue through this quarter, Chief Financial Officer Rachel Ruggeri said during the call. The chain still plans for 9,000 total outlets there by the end of 2025, executives said. Ruggeri reiterated the company's overall guidance for global comparable sales growth of 7% to 9% for its fiscal 2023.Losses in China were offset by North American sales, which jumped 10% as a younger and wealthier coffee-loving crowd shrugged off inflationary pressures and continued to buy customized cold drinks and snacks.

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Starbucks stock falls as earnings --- weighed down by China sales --- miss estimatesStarbucks' first-quarter results failed to meet Wall Street estimates because of weakness in China, and the company’s stock fell sharply in extended trading Thursday. It’s almost like charging $5.50 for a cold brew was a bad idea This is how bad things are at Starbucks: with every drink now they ask you 'hot' or 'cold'. Really? Cold drink at 20F? Trying to save on electricity costs any way they can. JonChevreau Probably because they treat their customers like children. How a good company has fallen so far is incredible. StarbucksCanada
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