Starbucks' revenue falls short of expectations for the second consecutive quarter due to a decline in same-store sales.

• While Starbucks' quarterly earnings were in line with expectations, its revenue did not meet Wall Street's forecasts.
• Last quarter, the coffee giant forecasted that its sales slump would persist and not improve.

On Tuesday, the company reported quarterly revenue that fell short of analysts' expectations due to weaker demand in both its U.S. and international cafes.

Shares of the company rose more than 1% in extended trading.

Based on a survey of analysts by LSEG, the company's reported results differed from Wall Street's expectations.

• Earnings per share: 93 cents adjusted, meeting expectations
• Revenue: $9.11 billion vs. $9.24 billion expected

The company's net income for the third quarter was $1.05 billion, or 93 cents per share, which is lower than the previous year's $1.14 billion, or 99 cents per share.

Excluding items, Starbucks earned 93 cents per share.

The company's same-store sales decreased by 3% in the quarter, resulting in a 1% drop in net sales to $9.11 billion.

This quarter, U.S. store traffic dropped by 6%, while domestic same-store sales fell by 2%. Despite this, an increase in average ticket helped boost sales. Last quarter, executives discussed plans to revive the struggling U.S. business, which involved using discounts and new drinks to attract customers who had left the chain.

In China, Starbucks' second-largest market, same-store sales plummeted 14% due to a decrease in both average ticket and transactions. This decline can be attributed to the intense competition from local coffee shops that offer lower prices.

Starbucks opened 526 net new stores in the fiscal quarter.

Starbucks will reveal its fiscal 2024 outlook on its upcoming conference call, after cutting its revenue growth forecast to a low single-digit percentage and earnings per share growth range of flat to a low single-digit percentage in the last quarter.