Starbucks (SBUX) earnings Q4 2023

Starbucks on Thursday reported quarterly earnings and revenue that topped analysts’ expectations, fueled by strong U.S. demand for pricier drinks.

Shares of the company rose about 6% in premarket trading.

Here’s what Starbucks reported for its fiscal fourth quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG, formerly known as Refinitiv:

• Earnings per share: $1.06 vs. 97 cents expected
• Revenue: $9.37 billion vs. $9.29 billion expected

The coffee giant reported net income attributable to the company for the quarter ended Oct. 1 of $1.22 billion, or $1.06 per share, up from $878.3 million, or 76 cents per share, a year earlier.

Net sales climbed 11.4% to $9.37 billion.

The company’s same-store sales rose 8%, fueled by higher average checks and a 3% increase in customer traffic to its cafes. Analysts surveyed by StreetAccount were expecting same-store sales growth of 6.8%, but the company’s domestic locations outperformed.

Starbucks launched its fall menu, including the pumpkin cream cold brew and iconic pumpkin spice latte, in late August. With a legion of dedicated fans, those drinks typically drive customers to its locations while they are available.

“We had a remarkable fall launch that led to record-breaking average weekly sales,” CEO Laxman Narasimhan told analysts on the company’s conference call.

U.S. and North American same-store sales grew 8%. The average check in Starbucks’ home market rose 6%, while traffic ticked up 2%.

Outside North America, same-store sales increased 5%, driven entirely by more customer visits.

And in China, Starbucks’ second-largest market, same-store sales rose 5%. Customer traffic increased 8%, but average ticket fell 3%.

“We feel good about the overall returns that we’re getting there, and I’m heartened by how the business is coming together, despite all the headwinds that have been there for the last couple…