Starbucks +10% pre-market after earnings as US same store sales grow 4%, China same store sales +7% despite EPS miss

Source: [https://finance.yahoo.com/news/starbucks-earnings-company-posts-first-quarter-of-us-sales-growth-in-2-years-as-turnaround-continues-124759053.html](https://finance.yahoo.com/news/starbucks-earnings-company-posts-first-quarter-of-us-sales-growth-in-2-years-as-turnaround-continues-124759053.html)

>Starbucks (SBUX) posted its first quarter of North America and US same-store sales growth in two years on Wednesday as the company continues its turnaround efforts under CEO Brian Niccol.

>In its fiscal first quarter ended Dec. 28, Starbucks reported US and North America same-store sales rose 4%, topping estimates for a 2% rise. The increase was driven a 3% increase in foot transactions and a 1% increase in the average ticket.

>Starbucks last reported positive same-store sales for its US and North Ameica unit in the first quarter of its fiscal 2024. Starbucks stock rose as much as 4% following the results.

>The company reported same-store sales in China increased 7% in the latest quarter, more than the 2.5% increase Wall Street expected. Foot traffic was up 5% in the region, while the average ticket size was up 2%. Over 60% of Starbucks' store base is in the US and China. During the quarter, Starbucks sold a majority stake in its China business to Boyu Capital in a deal that valued the business at $4 billion.

>Global same-store sales posted a second consecutive quarter of growth, increasing by 4%, more than the 2% increase expected.

>Overall, Starbucks reported adjusted earnings per share of $0.56, missing forecasts for EPS of $0.59. Revenue came in ahead of estimates, tallying $9.9 billion against expectations for $9.65 billion, according to Bloomberg data.

>"Our Q1 results demonstrate our 'Back to Starbucks' strategy is working and we believe we're ahead of schedule," CEO Brian Niccol wrote in the release.

>There is a "clear line of sight to topline strength into sustainable earnings growth that positions us for long-term profitable growth," CFO Cathy Smith added.

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