Starbucks has been seeking to give to its sagging stock what it hands to customers worldwide across the world every day: a refreshing, caffeinated ‘pick me up.’ Fortunately, its efforts seem to be making headway. Unfortunately, that espresso might take some time to kick in.
Starbucks is up 4% after the market close after beating on top- and bottom-lines. Here are the results for the quarter:
Revenue: $9.5 billion (+4% YoY)Adjusted earnings per share (EPS): 50c (-46% YoY)Global comparable store sales: -2% YoY (6th consecutive decline)
Starbucks says that it opened 308 new stores in its latest report, finishing the period with 41,097 stores, with 61% of them in the U.S. and China.
Results for North American stores were a bright spot, with sales sinking by less than expected in its prized U.S. market and comparable transactions improving for a third consecutive quarter.
However, operating margins on North American stores were 7.7% lower year-over-year; significantly worse than the declines seen in international stores, which saw a 2% decline in operating margin YoY.
CEO Brian Niccol, who joined the firm as CEO in in Aug. 2024 after a years-long tenure at the helm of Chipotle (CMG) , said that the company’s comeback strategy was making “tangible progress”, adding that the turnaround was, “ahead of schedule.”
With its after hours jump, Starbucks is now even on the year, up about 0.89% year-to-date.
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