#Starbucks #Earnings #Cooler #Expected #Fiscal #Year
Key takeaways
- Starbucks reported revenue of $9.1 billion, below analysts’ expectations, and also beating expectations for net income and same-store sales.
- Java giant’s stock fell in late trading shortly after results were published.
- CEO Brian Nichol said the coffee chain would work hard to attract customers again.
Starbucks ( SBUX ) reported lower sales last quarter, ending its fiscal year with a decline.
Starbucks said the coffee chain’s net revenue fell 3% to $9.1 billion, while comparable store sales fell 7% in the latest quarter. Earnings per share amounted to 80 cents. Wall Street expected diluted earnings of 92 cents per share on revenue of $9.2 billion, according to consensus estimates compiled by Visible Alpha, along with a 5% decline in same-store sales.
CEO Brian Nicol, who joined from Chipotle (CMG) last month, said Starbucks is working to bring back consumers.
“My experience tells me that when we return to our core identity and consistently deliver a great experience, our customers will come back,” Nicol said. “We have a clear plan and are moving quickly to return Starbucks to growth.”
Shares fell about 1% in late trading. Prices fell to nearly $72 in May when Starbucks cut its 2024 forecast, but have since recovered, closing Wednesday at more than $97.
Wednesday’s earnings extend a period of slow sales. Comparable store sales fell 3% in the third quarter, and were down 4% in the quarter before that.
The coffee giant announced last week that it would not be issuing its 2025 forecasts as a way to give Nicol time to adjust to his new job. Analysts expect Starbucks to generate $38.4 billion in revenue and $4.1 billion in profits through September 2025, when its fiscal year ends, according to Visible Alpha. Wall Street expects same-store sales to increase 1.8% during that period.
Nicol took over the helm of Starbucks in September, while activist investors were rallying around her. Starbucks has since said it will enforce office attendance rules and make its cafes more attractive places to gather.
#Starbucks #Earnings #Cooler #Expected #Fiscal #Year
