Coffee chain Starbucks Corporation (NASDAQ: SBUX) has reported higher revenues and earnings for the first quarter of 2022. However the bottom-line grew at a slower pace than expected amid an 17% increase in operating expenses.
The Seattle, Washington-based coffeehouse said its first-quarter profit, on an adjusted basis, increased to $0.72 per share from $0.61 per share in the corresponding period of last year. However, the latest number came in below the market’s projection. Unadjusted net income moved up to $815.9 million or $0.69 per share from $622.2 million or $0.53 per share in the first quarter of 2021.
The bottom-line benefitted from a 19% increase in sales to $8.1 billion. Revenues also beat the consensus estimates. The positive outcome reflects a 13% rise in global comparable store sales. At $6.9 billion, total operating expenses were up 17%.
“As we enter the third year of this pandemic, our stores continue to play an important role as a community gathering place that offers safe, familiar and convenient experiences for our customers. Although demand was strong, this pandemic has not been linear, and the macro environment remains dynamic as we experienced higher-than-expected inflationary pressures, increased costs due to Omicron and a tight labor market,” said Kevin Johnson, chief executive officer of Starbucks.
Read management/analysts’ comments on Starbucks’ Q1 2022 earnings
Starbucks’ shares have been in a free fall since the beginning of the year, losing about 15% during that period. The stock traded lower in the early hours of Wednesday, after closing the previous session higher.