Categories Analysis, Consumer

Starbucks (SBUX): A glimpse into the performance of its two key markets

The company anticipates average weekly sales growth in the low-to-mid single-digits range in Q4 in China

Shares of Starbucks Corporation (NASDAQ: SBUX) were down over 1% on Wednesday. The stock has dropped 4% over the past one month. The coffee chain saw sales and profits increase in the double digits during its most recent quarter with growth across most of its segments. The company has a sizeable presence in the US and China, making these its key markets. Here’s a look at the performance of these regions during the most recent quarter:


In the third quarter of 2023, overall revenues for Starbucks’ North America segment grew 11% year-over-year to $6.7 billion while comparable store sales increased 7%. Within North America, comparable store sales in the US grew 7% as well, driven by solid ticket performance.

The company saw a growth of 21% in its US licensed store revenues in Q3, helped by a rise in post-COVID travel as well as strength across its portfolio. Its 90-day active Starbucks Rewards customers in the US grew around 15% YoY to 31.4 million during the quarter.

At the end of the third quarter, stores in the US and China comprised 61% of Starbucks’ global portfolio. The company ended Q3 with 16,144 stores in the US. Starbucks sees significant opportunity for new store growth in under-penetrated areas in the US. These include smaller cities along with new formats in larger metros.


Starbucks’ revenue in its International segment rose 24% YoY to $2 billion in Q3, with comparable store sales growth of 24%. Within International, revenue from China grew 51% on a YoY basis and 8% sequentially in the third quarter. Comparable store sales in China were up 46%, driven by a 48% increase in comparable transactions.

In its most recent quarter, the coffee chain reached over 20 million 90-day active Starbucks Rewards customers in China, marking the highest number it has had in the region. Starbucks ended the third quarter with 6,480 stores in China. Similar to the US, the company sees potential for expansion in under-penetrated areas in the China market.

In the third quarter, Starbucks saw average weekly sales in China increase sequentially and this momentum is expected to continue into the fourth quarter, with average weekly sales growth of low-to-mid single-digits resulting in similar-sized comp growth for the quarter.

Most Popular

BLK Earnings: BlackRock Q2 2024 profit jumps on higher revenues

Asset management company BlackRock, Inc. (NYSE: BLK) on Monday reported a double-digit increase in adjusted profit for the second quarter of 2024, aided by an 8% increase in revenues. Second-quarter

GS Earnings: All you need to know about Goldman Sachs’ Q2 2024 earnings results

The Goldman Sachs Group, Inc. (NYSE: GS) reported its second quarter 2024 earnings results today. Net revenues were $12.73 billion, up 17% compared to the same period a year ago,

Intuitive Surgical likely to report strong revenue, profit growth for Q2 2024

Intuitive Surgical, Inc. (NASDAQ: ISRG) is expected to report its second-quarter earnings next week, amid expectations for strong revenue and profit growth. The medical device maker is thriving on the

Add Comment
Viewing Highlight