Starbucks reports record revenue as China booms, but sales still fall short of expectation 

DEE-ANN DURBIN

Starbucks reported record revenue in its fiscal third quarter as its China business roared back to life.

Still, the company’s results were mixed for the 13 weeks ending July 2. While its earnings surpassed Wall Street’s forecast, its revenue and same-store sales were lower than expected as North American store traffic slowed.

Starbucks shares were down 1% in after-market trading Tuesday.

Same-store sales — or sales at stores open at least a year — jumped 46% in China, reversing last year’s declines due to COVID restrictions. At Chinese stores opened in 2019 or earlier, morning routines are fully back to 2019 levels, the company said.

Starbucks CEO Laxman Narasimhan, who spent part of the quarter visiting stores in China, noted that the company now has a record 20 million active Starbucks Rewards users in the country. And he said he’s convinced there’s a long runway ahead. Narasimhan noted