- Starbucks’ global comparable sales declined by 3%, missing the estimate of -2.71%.
- North America sales dropped by 2%, short of the -1.62% estimate.
- Sales in the US fell by 2%, close to the -2.06% estimate.
- International sales decreased by 7%, below the -5.11% estimate.
- China saw a significant drop in sales by 14%, compared to the -10.6% estimate.
- Adjusted earnings per share came in at 93 cents, just above the 92 cents estimate.
- Net revenue was $9.11 billion, down 0.6% year-over-year, missing the $9.2 billion estimate.
- Operating income fell to $1.52 billion, a 4.2% decrease year-over-year, falling short of the $1.53 billion estimate.
- Adjusted operating margin was slightly higher at 16.7%, exceeding the 16.3% estimate.
- Operating margin was 16.7%, just above the 16.6% estimate.
- North America’s operating margin was 21%, barely missing the 21.1% estimate.
- International operating margin stood at 15.6%, below the 17.4% estimate.
- Channel development operating margin was 53.7%, higher than the 49.9% estimate.
- Average ticket prices increased by 2%, meeting the 1.98% estimate.
- North American average ticket price rose by 3%, slightly below the 3.24% estimate.
- International average ticket price dropped by 4%, significantly below the -0.63% estimate.
- North America added 133 net new stores, less than the 165.8 expected.
- Internationally, 393 new stores were opened, falling short of the 433.32 estimate.
- Comparable transactions decreased by 5%, missing the -4.27% estimate.
- North American comparable transactions dropped by 6%, below the -4.91% estimate.
- International comparable transactions fell by 3%, narrowly missing the -3.71% estimate.
- CEO Laxman Narasimhan noted that Starbucks’ three-part action plan is starting to show operational improvements.
Starbucks Corp on Smartkarma
Analyst coverage of Starbucks Corp on Smartkarma reveals contrasting sentiments. Baptista Research‘s report titled “Starbucks Corporation: A Major Disappointment But These 6 Factors That Can Help Them Recover! – Major Drivers” highlights the challenges faced by Starbucks in the second quarter fiscal year 2024. Global comparable store sales declined by 4% year-over-year, with a 1% dip in total revenue to $8.6 billion. Factors such as declining foot traffic in North America and an 11% drop in China, compounded by adverse weather conditions impacting comp sales, contributed to the challenges.
On a more optimistic note, Baptista Research‘s report “Starbucks Corporation: Substantial Growth Through New Store Openings & Innovation! – Major Drivers” praises Starbucks’ growth strategy despite short-term hurdles. In the first quarter fiscal year 2024, Starbucks saw a promising 8% year-over-year increase in total company revenue to $9.4 billion. The company’s global comparable store sales also showed resilience, with a 5% year-over-year growth driven by strong performances in North America and China. The reports offer insights into both the struggles and growth prospects for Starbucks Corp.
A look at Starbucks Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 0 | |
| Dividend | 4 | |
| Growth | 5 | |
| Resilience | 5 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Starbucks Corporation, a global coffee giant, is positioned for strong long-term growth according to Smartkarma Smart Scores. With top marks in Growth and Resilience, Starbucks is poised to expand its market presence and weather economic challenges. This indicates a positive outlook for the company’s future prospects, backed by a strong ability to adapt and innovate in the face of changing market dynamics.
Additionally, Starbucks Corp earns high scores in Dividend payouts, showcasing its commitment to rewarding shareholders. While the Momentum score is slightly lower, the overall Smart Scores paint a promising picture for investors considering the beverage retailer. With a diverse product portfolio and a robust global presence, Starbucks continues to be a force to reckon with in the specialty coffee market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
