Coffee chain Starbucks reported strong Q4 consolidated net revenues up 3% to a record $8.4 Billion with comparable store sales up 7% globally and double digits internationally, excluding China, primarily driven by an 8% increase in average ticket.

The results exceeded analysts’ expectations and caused the share price to increase by more than 8% but the evolution since the beginning of the year is -20%.

International comparable store sales decreased 5%, driven by a 5% decline in comparable transactions and a 1% decline in average ticket while China comparable store sales decreased 16%, driven by a 17% decline in comparable transactions, partially offset by a 1% increase in average ticket.

The company opened 763 net new stores in Q4, ending the period with 35,711 stores globally, 51% company-operated and 49% licensed.

At the end of Q4, stores in the U.S. and China comprised 61% of the company’s global portfolio, with 15,878 stores in the U.S. and 6,021 stores in China.

Consolidated net revenue was up 3% to a record $8.4 billion, inclusive of a 3% unfavorable impact from foreign currency translation and earnings per share of $0.76, down from $1.49 in the prior year.

Operating margin of 14.2% decreased 400 basis points from 18.2% in the prior year, primarily driven by investments and growth in labor including enhanced store partner wages as well as increased spend on new partner training, inflationary pressures, coupled with sales deleverage related to COVID-19 restrictions in China, partially offset by strategic pricing, primarily in North America and sales leverage across markets outside of China.

“We saw accelerating demand for Starbucks coffee around the world in Q4 and throughout the year,” said Howard Schultz, interim Chief Executive Officer.

“And our Q4 results demonstrate early evidence of the success of our U.S. Reinvention investments. Reinvention will touch, and elevate, every aspect of our Starbucks partner, customer and store experiences, and ideally position Starbucks to deliver accelerated, sustainable, long-term, profitable growth and value creation beginning in 2023,” Schultz added.

On an annual basis, consolidated net revenue was up 11% to a record $32.3 billion, inclusive of a 2% unfavorable impact from strong dollar.

Operating margin of 14.3% decreased 250 basis points from 16.8% in the prior year, primarily driven by investments and growth in labor including enhanced store partner wages, inflationary pressures, as well as sales deleverage related to COVID-19 restrictions in China, partially offset by sales leverage across markets outside of China and strategic pricing, primarily in North America.