Starbucks acquisitions were under pressure during the holiday season due to the high cost and redesign of the Covid-19 closure systems that ruined business in China.
Coffee companies showed a similar growth rate of 13% per annum in the quarter ended January 2, led by a reorganization of restaurants in the US and higher prices on menus.
But similar exports have dropped by 14 percent in China, where some cities have put in place measures to reduce food insecurity and other activities. Sales fell by 3 percent in global corporate markets, which was close to what experts predict would rise by 0.5%.
Starbucks also missed a revised estimate of 72 cents per share, which was 8 cents below what Wall Street predicted, as rising wages and inventory helped raise operating costs.
Its shares lost 4.6 percent in sales after hours Tuesday.
Restaurants are struggling with high purchasing costs and a shortage of staff available at a time when many consumers are eager to return for a meal following the Covid-19 vaccine. The rise of Covid disease in the winter as well as regulations related to isolation exacerbate labor pressures, although companies raise wages to attract new employees.
Kevin Johnson, head of Starbucks, said that although customer demand was strong, the company faced “higher challenges than expected”, as well as the difficult labor market and higher prices related to Omicron’s resumption of Covid cases.
Total sales rose 19 percent to $ 8.1bn across the first quarter. Total revenue rose to $ 816mn, up from $ 622mn last year.
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