Key Takeaways
- Starbucks same-store sales fell 3% in the latest quarter after dropping 4% in the prior quarter.
- The company posted revenue of $9.1 billion, 1% lower year-over-year and below analysts’ expectations.
- CFO Rachel Ruggeri said the company is ahead of schedule with its efficiency efforts.
Starbucks Corp. (SBUX) missed revenue expectations with its fiscal third-quarter results, driven in part by a decline in same-store sales.
The coffee titan reported revenue of $9.1 billion, down 1% year-over-year and below analysts’ expectations of $9.22 billion, per Visible Alpha. Earnings per share (EPS) came in at 93 cents, down from a year earlier but in line with expectations.
Global same-store sales fell 3%, as a 5% decrease in comparable transactions partially offset a 2% increase in average ticket value. In China, same-store sales fell 14%.
Shares of Starbucks added more than 2% after the bell Tuesday but are still down over 20% in 2024 after the company’s fiscal-second quarter results sent shares plunging in May.
“Our efficiency efforts, which are tracking ahead of expectations, partially offset investments associated with the cautious consumer environment,” Chief Financial Officer Rachel Ruggeri said.
In November, Starbucks announced a “triple shot reinvention” that it said would generate $3 billion in savings over three years.