by Sloan T. Wilson, The Chicago Times
August 3, 2022
SEATTLE – Starbucks announced Tuesday better than expected quarterly earnings and revenue, beating Wall Street estimates.
Starbucks announced earnings of 84 cents per share and revenue of $8.15 billion versus Wall Street consensus of earnings of 75 cents per share and $8.11 billion.
Starbucks also reported a third-quarter net income of $912.9 million which is down from $1.15 billion from a year ago. Management noted that inflation and higher wages cut into margins for this quarter. Net sales increased 9% to $8.15 billion. Many Starbucks locations are going through the process of unionization, which may ultimately lead to price hikes for consumers.
The coffee giant also touted the popularity of cold beverages which accounted for three quarters of US sales for the quarter. Interim CEO Howard Schultz, claimed customers are more likely to add syrups and milks to cold drinks than hot drinks, thus allowing for raising the price of the overall beverage.