Starbucks Faces Demand Slowdown in North America
Starbucks reported quarterly comparable sales that missed market expectations, indicating signs of slowing demand in North America and international markets, despite a sharp rebound in China sales. While the company has focused on its younger, wealthier U.S. customer base by introducing new drinks and promoting food options, quarterly transactions in North America only increased by 1%, compared to a 6% rise in the prior quarter. China experienced a significant recovery, with comparable sales surging 46% in the third quarter. Starbucks maintained its forecast for full-year comparable sales growth near the high end of a 7% to 9% range. The company's revenue is expected to face continued pressure in the fourth quarter, driven by the at-home coffee business. In contrast, pricing trends are expected to moderate following several months of price hikes. The company reported a profit of $1 per share, beating analysts average estimate of 95 cents.