Starbucks Corp (NASDAQ:SBUX) stock rose 2.72% (As on August 2, 11:54:52 AM UTC-4, Source: Google Finance) after the company’s quarterly sales fell short of analysts’ estimates as traffic growth slowed in the US. Higher prices and add-ons to beverages helped bolster profit. The chain’s comparable sales, a key gauge of how existing stores are performing, rose 10 percent in three months through July 2 from the prior year, trailing the average estimate of analysts polled by Bloomberg. Sales by that metric rose seven percent in North America as transactions advanced 1 percent, slower than last quarter. International same-store sales grew 24 percent in the quarter, in line with estimates, powered by higher traffic. That included higher-than-anticipated growth in China, which is still recovering after extended COVID-19 restrictions. China comparable store sales increased 46%, driven by a 48% increase in comparable transactions and a 1% decline in average ticket. The company opened 588 net new stores in Q3, crossing the 37,000 store count threshold globally, ending the period with 37,222 stores: 51% company-operated and 49% licensed. At the end of Q3, stores in the U.S. and China comprised 61% of the company’s global portfolio, with 16,144 and 6,480 stores in the U.S. and China, respectively. Net revenues for the Channel Development segment decreased 6% over Q3 FY22 to $448.8 million in Q3 FY23, driven by a decline in revenue in the Global Coffee Alliance.

SBUX in the third quarter of FY 23 has reported the adjusted earnings per share of $1, beating the analysts’ estimates for the adjusted earnings per share of 95 cents, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 12 percent to $9.17 billion in the third quarter of FY 23, missing the analysts’ estimates for revenue of $9.29 billion. The company delivered Non-GAAP operating margin of 17.4% increased from 16.9% in the prior year, primarily driven by sales leverage, pricing and productivity improvement. Starbucks Rewards loyalty program 90-day active members in the U.S. increased to 31.4 million, up 15% year-over-year.

Starbucks expects earnings per share to expand by 16 percent to 17 percent in its fiscal 2023 year, while it had previously forecast growth on the low end of its 15 percent to 20 percent long-term goal. It maintained its outlook for revenue-growth and same-store sales. The company still expects China comparable-sales growth in the low- to mid-single digits.