Tags: starbucks earnings | omicron

Starbucks Serves Disappointing Comparable Sales on Omicron Drag

Starbucks
(Getty Images)

Tuesday, 01 February 2022 04:21 PM EST

Starbucks Corp. missed market estimates for quarterly same-store sales on Tuesday as rising COVID-19 infections during December and fresh curbs hampered a recovery in its fast-growing China market.

The fast-spreading omicron variant has delayed office reopenings and worsened a labor crunch, hurting the U.S.-based chain which relies heavily on consumers picking up their coffees en route to work.

Shares of Starbucks were down 3.5% in extended trading, following a 16% drop last month.

Several Chinese cities have closed seating areas and restricted movement to curb COVID-19 ahead of the Winter Olympics, knocking the coffee chain's revenue. The brand also came under fire in the country after a report said two of its stores used expired ingredients.

Global comparable sales rose 13% in the first quarter ended Jan. 2, Starbucks said, while analysts polled by Refinitiv IBES had expected growth of 13.2%.

Comparable sales in the United States jumped 18%, benefiting from new cold beverages, higher prices and an increase in rewards members.

But same-store sales in the international division declined 3%, reflecting a 14% drop in China. Analysts had expected a 0.5% increase in the international segment.

Higher-than-expected inflation, staffing costs and COVID-related pay also hurt Starbucks, particularly in December.

Total net revenue rose 19% to $8.1 billion, while analysts had expected $7.95 billion. On an adjusted basis, it earned 72 cents per share.

© 2026 Thomson/Reuters. All rights reserved.


StreetTalk
Starbucks Corp. missed market estimates for quarterly same-store sales on Tuesday as rising COVID-19 infections during December and fresh curbs hampered a recovery in its fast-growing China market.
starbucks earnings, omicron
224
2022-21-01
Tuesday, 01 February 2022 04:21 PM
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