Starbucks reported record quarterly sales for 1Q 2022, but higher costs put a dent in profits.
Shares of the coffee giant rose 5% in after-hours trading.The"Siren" logo hangs outside a Starbucks Coffee shop.Sales were impacted due to China's tough COVID-19 curbs. Comparable sales in China declined 23%, overshadowing 12% growth in North America. Same-store sales rose 7% globally, topping estimates.
Starbucks suspended guidance for the remainder of its current fiscal year as uncertainty around its China market makes it difficult to predict earnings. "I remain convinced Starbucks' business in China will be eventually larger than our business in the U.S.," Chief Executive Officer Howard Schultz said in a call with investors.
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