Why Starbucks Stock Surged Today
Shares of Starbucks (NASDAQ: SBUX) jumped 9.8% on Wednesday after the coffeehouse colossus delivered second-quarter financial results that were better than many investors feared.
Ahead of Starbucks' earnings release, shareholders were concerned that coronavirus-related lockdowns in China would weigh heavily on its sales and profits. Those fears proved to be well-founded. The restaurant chain's comparable-store sales plunged 23% in China, which resulted in Starbucks' international same-store sales shrinking by 8%.
Yet the situation in the U.S. was far brighter. U.S. comps climbed 12%, driven by a 7% rise in average ticket size and a 5% increase in transactions. That led Starbucks' overall same-store sales to grow by a solid 7%.
Source Fool.com
