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Starbucks profit rises despite hit from China

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Agence France-Presse

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img alt="The logo of coffee chain Starbucks at the Jewel Changi Airport mall in Singapore, 28 August 2020. EPA-EFE/WALLACE WOON/FILE" src="https://sa.kapamilya.com/absnews/abscbnnews/media/2022/business/09/14/202220914-starbucks-epa.jpg"/><figcaption>The logo of coffee chain Starbucks at the Jewel Changi Airport mall in Singapore, 28 August 2020. <em>EPA-EFE/WALLACE WOON/FILE</em></figcaption></figure></div><p>NEW YORK, United States - Starbucks reported higher quarterly profits, fueled by solid North American growth that compensated for continued weakness in China due to Covid-19 restrictions.</p><p>The big coffee chain&#x27;s results were a study in contrast between its two main markets, with North American comparable sales jumping 10 percent and China comparable sales slumping 29 percent.</p><p>The results in the United States reflected a lift from &quot;strategic&quot; price increases that helped offset the impact of increased spending on wages and employee benefits. </p><p>Acting Chief Executive Howard Schultz described the results as strong in light of &quot;challenging global consumer and inflationary environments, a soft quarter for retail overall and the unprecedented, Covid-related headwinds that unfolded in China in Q1.&quot;</p><p>Overall, profits rose 4.8 percent from the year-ago period to $855.2 million in the fiscal first quarter ending January 1. Revenues increased 8.2 percent to $8.7 billion.</p><p>The profits translated into earnings per share of 75 cents, a bit below analyst estimates. </p><p>Shares fell 2.4 percent to $106.57 in after-hours trading.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/06/17/22/how-starbucks-philippines-seeks-to-reduce-environmental-footprint">Starbucks Philippines aims to &#x27;go greener&#x27;, operator says</a></li>	<li><a href="https://news.abs-cbn.com/business/09/14/22/starbucks-ph-increases-beverage-prices-by-p5">Starbucks PH hikes coffee prices by P5 starting Sept. 13</a></li>	<li><a href="https://news.abs-cbn.com/business/07/25/20/coffee-bean-tea-leaf-smashburger-brands-profitable-by-2021-jfc">Coffee Bean &amp; Tea Leaf, Smashburger brands &#x27;profitable&#x27; by 2021: JFC</a></li></ul><div><strong>RELATED VIDEO:</strong></div><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=2446710" width="100%"></iframe></figure><div class="iwantbar">Watch more News on <a href="https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news" target="_blank">iWantTFC</a></div>

Starbucks reported higher quarterly profits, fueled by solid North American growth that compensated for continued weakness in China due to Covid-19 restrictions.