Starbucks Q2 Earnings Highlights: Hits Record Q2 Revenue Despite China COVID-19 Setback, More Stores Openings Planned

Restaurant and coffee powerhouse Starbucks Corp SBUX reported second-quarter financial results after market close Tuesday. Here are the key highlights for investors.

What Happened: Starbucks reported second-quarter revenue of $7.64 billion, which was up 15% year-over-year. The quarterly revenue was a second-quarter record for the company and came in ahead of a consensus estimate of $7.6 billion, according to data from Benzinga Pro.

The company reported second-quarter adjusted earnings per share of 59 cents, which was in line with estimates.

Same-store sales were up 7% globally, with a 12% increase in North America and a decline of 8% in international markets. Comparable same-store sales fell 23% in China due to a drop in overall transactions from increased COVID-19 related lockdowns.

The company opened 313 net new stores in the second quarter. Starbucks ended the second quarter with 34,630 stores globally, with a split of 51% company-owned and 49% licensed.

The company reported 16,962 North American stores and 17,704 international stores to end the second quarter. Stores in the U.S. and China represented 61% of the company’s global store count.

Starbucks saw its reward membership program hit 26.7 million members in the U.S. in the second quarter, up 17% year-over-year.

“We are single-mindedly focused on enhancing our core U.S. business through our partner, customer and store experiences,” interim CEO Howard Shultz said.

Related Link: How To Trade Starbucks Stock Heading Into Q2 Earnings 

What’s Next: Starbucks mentioned lockdowns in China and higher inflation in the second quarter, which could continue to be trends moving forward.

The company said it would give an update to full year guidance on its quarterly earnings call, set for later Tuesday.

“We are accelerating our store grown plans, primarily adding high-returning drive-thrus, and accelerating renovation programs,” Shultz said.

SBUX Price Action: Starbucks shares are up 2.4% to $76.15 in after-hours trading Tuesday. Shares hit a new 52-week low of $73.39 during Tuesday’s trading session.