Starbucks Corporation (NASDAQ:SBUX) stock rose 2.99% (As on August 3, 11:41:18 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the third quarter of FY 22. Global comparable store sales increased 3%, driven by a 6% increase in average ticket, partially offset by a 3% decline in comparable transactions. North America comparable store sales increased 9%, driven by an 8% increase in average ticket and a 1% increase in comparable transactions; U.S. comparable store sales increased 9%, primarily driven by an 8% increase in average ticket. International comparable store sales decreased 18%, driven by a 15% decline in comparable transactions and a 4% decline in average ticket; China comparable store sales decreased 44%, driven by a 43% decline in comparable transactions and a 1% decline in average ticket. The company opened 318 net new stores in the third quarter, ending the period with 34,948 stores globally. At the end of Q3, stores in the U.S. and China comprised 61% of the company’s global portfolio, with 15,650 stores in the U.S and 5,761 stores in China.

SBUX in the third quarter of FY 22 has reported the adjusted earnings per share of $0.84, beating the analysts’ estimates for the adjusted earnings per share of $0.75, according to Analysts polled by Thomson Reuters. The company had reported the adjusted revenue growth of 9 percent to $8.15 billion in the third quarter of FY 22, beating the analysts’ estimates for revenue of $8.11 billion. GAAP operating margin of 15.9% decreased 400 basis points from 19.9% in the prior year, primarily driven by inflationary pressures, investments in labor including enhanced store partner wages as well as sales deleverage related to COVID-19 restrictions in China, partially offset by pricing in North America and leverage across markets outside of China.

Moreover, Net revenues for the North America segment grew 13% over Q3 FY21 to $6.1 billion in Q3 FY22. Net revenues for the International segment declined 6% over Q3 FY21 to $1.6 billion in Q3 FY22, driven by an 18% decline in comparable store sales, primarily attributable to COVID-19 related restrictions in China, as well as a 9% adverse impact from foreign currency translation. Net revenues for the Channel Development segment grew 16% over Q3 FY21 to $479.7 million in Q3 FY22, driven by growth in the Global Coffee Alliance and ready-to-drink business.