In a quarterly earnings report that exceeded analyst expectations, Starbucks announced robust financial results driven by strong demand in the United States for more expensive beverage options. The company’s stock witnessed a 10% surge during morning trading.

Here’s a breakdown of Starbucks’ fiscal fourth-quarter results in comparison to Wall Street’s projections, based on an analyst survey by LSEG (formerly known as Refinitiv):

• Earnings per share: Starbucks reported $1.06 per share, surpassing the expected 97 cents.
• Revenue: The company’s revenue amounted to $9.37 billion, outperforming the anticipated $9.29 billion.

For the quarter ending on October 1, Starbucks reported a net income of $1.22 billion, equivalent to $1.06 per share. This marks a notable increase from the previous year when the company reported $878.3 million in net income, or 76 cents per share.

Starbucks experienced an 11.4% rise in net sales, totaling $9.37 billion. The firm’s same-store sales recorded an 8% increase, driven by higher average order values and a 3% boost in customer foot traffic at its cafes. Analysts surveyed by StreetAccount were expecting a 6.8% growth in same-store sales, but Starbucks’ domestic locations outperformed those expectations.

One of Starbucks’ major draws is its seasonal menu, featuring items like the pumpkin cream cold brew and the iconic pumpkin spice latte. These offerings typically draw customers to Starbucks locations while they are available, resulting in record-breaking average weekly sales during the fall season.

In the U.S. and North America, same-store sales grew by 8%. The average check in Starbucks’ home market rose by 6%, while traffic increased by 2%. Outside North America, same-store sales saw a 5% increase, primarily attributed to an increase in customer visits.

In China, Starbucks’ second-largest market, same-store sales experienced a 5% growth. Although customer traffic increased by 8%, the average ticket price decreased by 3%.

For the fiscal year 2024, Starbucks expects a 5% to 7% growth in same-store sales, down from its earlier long-term projection of 7% to 9% growth in same-store sales. The company’s Chief Financial Officer, Rachel Ruggeri, mentioned that the same-store sales outlook represents a “healthy and attainable comp guidance.”

Starbucks’ broader financial outlook remains consistent with its previously stated long-term goals, such as a revenue forecast of 10% to 12% growth, and an earnings per share growth forecast of 15% to 20%. The company anticipates expanding its global footprint by 7% in fiscal 2024, with 4% growth expected in the U.S. and 13% growth in China. Starbucks projects that China will report a 4% to 6% growth in same-store sales over the last three quarters of the fiscal year. The company’s outlook does not account for potential currency exchange rate impacts.

Starbucks is also set to provide an update on its “reinvention” strategy to investors in New York City in the afternoon.