Starbucks Q3 Earnings: Revenue Miss, EPS In Line, Comps Down 3%, 'Action Plan Is Beginning To Work'

Author: Adam Eckert | July 30, 2024 04:31pm

Starbucks Corp (NASDAQ:SBUX) reported financial results for its fiscal third quarter after the market close on Tuesday. Here’s a look at the key numbers from the quarter.

Q3 Earnings: Starbucks reported third-quarter revenue of $9.1 billion, missing the consensus estimate of $9.24 billion. The coffee giant reported quarterly earnings of 93 cents per share, in line with analyst estimates.

Starbucks had missed estimates on the top and bottom lines for two straight quarters heading into Tuesday’s print, according to Benzinga Pro.

Comparable store sales declined 3% globally, driven by a 5% decline in comparable transactions, partially offset by a 2% increase in average tickets. Comps fell 2% in North America, 14% in China and 7% internationally during the quarter. 

Active U.S. rewards memberships reached 33.8 million in the quarter, up 7% on a year-over-year basis. The company opened 526 net new stores in the third quarter and ended the period with 39,477 total locations.

“Our three-part action plan is beginning to work and driving operational improvements that we expect to improve financial performance,” said Laxman Narasimhan, CEO of Starbucks.

“Our growing culture of focused innovation and relentless execution continues to enhance our capabilities, while helping return the business to sustainable growth.” 

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Starbucks' board also declared a cash dividend of 57 cents per share, payable on Aug. 30 to shareholders of record as of Aug. 16.

Starbucks said it will discuss fiscal-year 2024 financial targets during its conference call, which is set to kick off at 5 p.m. ET.

SBUX Price Action: Starbucks shares were up1.92% in after-hours, trading at $77.40 at the time of publication, according to Benzinga Pro.

Photo: Şahin Sezer Dinçer from Pixabay.

Posted In: SBUX