Will Starbucks' Struggles in China Last? Here's What Investors Should Know
When it reported fiscal 2023 first-quarter financial results on Feb. 2, Starbucks (NASDAQ: SBUX) disappointed Wall Street. Revenue of $8.7 billion and adjusted earnings per share of $0.75 were up 8% and 4%, respectively, compared to the prior-year period. But both figures came in below estimates, helping send shares lower.
In addition to the widely followed headline numbers, what really stood out was the coffeehouse giant's ongoing struggles in China. Here's what Starbucks shareholders need to know about the situation right now in one of the company's most important regions.
During the fiscal 2023 first quarter, same-store sales, which measure revenue from stores that have been open 13 months or longer, declined a whopping 29% in China, compared to a 5% increase globally. For fiscal 2022 (ended Oct. 2), comps in China were down 24%.
Source Fool.com
