Starbucks Shares Rise as Brisk US Sales Outweigh Declines in China
- Results show that US diners are willing to pay more to eat out
- Sales gain was powered by higher prices; transactions fell
A customer holds a drink inside a Starbucks coffee shop in San Francisco.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
Starbucks Corp. shares rose as a strong US performance and higher prices helped to offset lower traffic and sluggishness in China, where Covid-19 measures have sharply suppressed demand.
The results reinforce the message found in recent reports from McDonald’s Corp. and Chipotle Mexican Grill Inc.: Americans are still opening up their wallets to eat out -- even if inflation is starting to erode purchasing power.