Third quarter earnings report for Starbucks (SBUX) in 2024

Welcome to Extreme Investor Network, where we provide you with the latest and most insightful business news. Today, we are diving into the recent quarterly report from Starbucks, a coffee giant that has been navigating through both U.S. and international challenges.

Starbucks recently reported quarterly revenue that missed analysts’ expectations, attributed to weaker demand in both its U.S. and international cafes. However, the results were not as dire as investors feared, leading to a more than 5% increase in the company’s shares in extended trading.

In comparison to what Wall Street was expecting, here is a breakdown of Starbucks’ report:

– Earnings per share: 93 cents adjusted vs. 93 cents expected
– Revenue: $9.11 billion vs. $9.24 billion expected

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Despite a 1% drop in net sales to $9.11 billion and a 3% decline in same-store sales, Starbucks is seeing some positive signs in its business. The company has noted an increase in customers purchasing packaged coffee at grocery stores, but still faces challenges in its cafes due to a “challenging consumer environment.”

CEO Laxman Narasimhan remains optimistic about the future of Starbucks, particularly in the U.S. market where new products like the Summer-Berry Refreshers drinks have seen success. The company has also made improvements to its mobile app to enhance the customer experience and drive sales.

Externally, Starbucks is exploring strategic partnerships to accelerate its growth in China, where same-store sales have declined. Despite facing competition from local coffee shops, Starbucks is seeing improvements in daily transactions and weekly sales in the country.

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Overall, Starbucks opened 526 net new stores in the fiscal quarter and reiterated its outlook for future revenue and earnings per share growth.

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