Starbucks shares reach 2.5-month high on sales growth thanks to pumpkin lattes

At its peak during trading in New York, the price of the company's securities reached $101.9. This is 11.6% more than at the close on November 1. The share price topped $100 for the first time since mid-August. At the time of publication, Starbucks shares were up 10.8% to $101.2.

Starbucks said its net income in the fiscal fourth quarter ended Oct. 1 rose 39% to $1.22 billion. On a per-share basis, it was $1.06, up from $0.76 in the same period a year earlier. Revenue rose 11% to a record $9.4 billion. The results exceeded expectations: according to LSEG, analysts had forecast revenue of $9.29 billion and earnings per share of $0.97.

Sales in coffee shops also turned out to be better than expected: they grew by 8% globally, against an average forecast of 6.3% , Bloomberg notes. At the same time, both the number of purchases (by 3%) and the average bill (by 4%) increased. Sales in North America and the United States increased by 8%, in China by 5%. These markets account for 61% of the company's global portfolio.

Strategies such as the early introduction of the traditional autumn line and new products contributed to sales growth , writes Reuters. The return of the company's most popular seasonal drink, the Pumpkin Spice Latte, resulted in record weekly sales , Starbucks CEO Laxman Narasimhan said. Pumpkin spice latte sales began in the United States in August, and in the first weekend, coffee shop traffic increased by 20%, according to Placer.ai.

However, Starbucks warned that sales growth could slow. The company forecasts global like-for-like sales to grow 5% to 7% in the next fiscal year.

Starbucks' results show that consumers are willing to buy expensive coffee despite inflationary pressures, Reuters notes. Narasimhan confirmed that the company does not see a change in customer sentiment. “The consumer is under pressure, but they are still willing to spend on such affordable luxury,” explained Stephens analyst Joshua Long.

This is confirmed by the results of other food and beverage manufacturers, Bloomberg writes, having analyzed the reports. According to his conclusion, due to inflation, US consumers began to abandon purchases such as motorcycles, boats and large household appliances. At the same time, PepsiCo , Coca-Cola and the Chipotle Mexican Grill restaurant chain reported increased sales, despite rising prices .