Starbucks has beaten the forecasts for its fiscal second quarter, closed on April 2, thanks to the increase in prices, the cut in costs and the improvement of the business in China after the reopening of its economy by ending the restrictions against Covid.

Starbucks billed US$8.720 million in the period, representing an increase of 14% over the previous year, beating the US$8.410 million expected by the market consensus. Starbucks profit rose 35% to $908 million.

Starbucks CEO Laxman Narasimhan, who just took over from Howard Schultz, has indicated that his priorities are expanding international business and making stores run more efficiently to improve profitability. “We also see opportunities to improve our margins going forward,” added the executive.

Forecasts and fall in the Stock Market Despite the good performance in the second quarter, Starbucks maintains its forecasts for the entire year due to the challenging environment due to the slowdown in the world economy and the increase in costs. The conservative estimate for the year, together with the lack of confirmation of the long-term objectives set by the company in September last year, has been a jug of cold water for investors and the Starbucks share price falls more than 8% mid session on Wall Street.

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The group has pointed out that consumers in the US, its main market, are not reducing spending despite price rises. Comparable sales – coffee shops that have been open for at least thirteen months – in the domestic market grew 12% in the second quarter.

In China, another key market for Starbucks, revenue rose 3%, down from a 29% decline in the first quarter. Globally, comparable revenue rose 11%. In the quarter, the company opened 464 cafeterias on a net basis and closed the period with 36,634 establishments worldwide, of which 51% are directly operated and 49% licensed.

Coffee shops in the US (16,044) and China (6,243) represent 61% of the total. In the semester, Starbucks earned US$1,764 million, 18% more, and billed US$17,434 million, 11% more.