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Shares of Starbucks fell 3.5 percent in extended trading after falling 16 percent last month.
Starbucks Corp. lost its quarterly sales market estimates for the same store on Tuesday, as the rise in COVID-19 infections during December and the slowdown hindered its recovery in a growing Chinese market.
The rapidly expanding Omicron variant has delayed the reopening of offices and exacerbated the labor crisis, damaging the U.S. chain as consumers rely on receiving coffee on the way to work.
Shares of Starbucks fell 3.5 percent in extended trading after falling 16 percent last month.
Several Chinese cities have closed their seats and restricted movement to reduce COVID-19 ahead of the Winter Olympics, hitting coffee chain revenue. The brand was also in the country after a report said it was using expired ingredients from two of its stores.
Global comparable sales rose 13 percent in the first quarter ended Jan. 2, Starbucks said, while analysts surveyed by Refinitiv IBES expected a 13.2 percent increase.
U.S. peer sales rose 18 percent, benefiting from new cold drinks, higher prices and an increase in premium members.
But sales at the same international division store fell 3 percent, reflecting a 14 percent drop in China. Analysts had expected a 0.5 per cent rise in the international segment.
Higher-than-expected inflation, staff costs and COVID-related wages also hurt Starbucks, especially in December.
Net income rose 19 percent to $ 8.1 billion, while analysts expected $ 7.95 million. On an adjusted basis, he earned 72 cents per share.
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