Asset Sales and Gains - The company sold assets related to the Seattle's Best Coffee brand to Nestlé for $110.0 million, resulting in a pre-tax gain of $91.3 million[25]. Segment Disclosure and Tax Guidance - The company expects to adopt new segment disclosure requirements for the fiscal year ending September 28, 2025, which may not have a material impact on consolidated financial statements[24]. - The company anticipates significant impacts on annual income tax disclosures due to new guidance effective for the fiscal year ending September 27, 2026[24]. Hedging Activities - The company entered into cash flow hedges for coffee, with gains of $33.6 million recorded in AOCI as of October 1, 2023[30]. - The company reported a net investment hedge with cross-currency swaps showing gains of $202.5 million as of October 1, 2023[30]. - The company recorded a pre-tax loss of $4.3 million related to interest rate hedges as of June 30, 2024[30]. - The company has forward contracts to hedge anticipated cash flows under dairy purchase contracts, with gains recorded in AOCI[29]. - The company reported a gain of $10.6 million from cash flow hedges related to coffee for the quarter ended June 30, 2024[32]. - As of June 30, 2024, the notional amounts of outstanding derivative contracts include $73 million in coffee and $1,730 million in cross-currency swaps[35]. - The fair value of outstanding derivative contracts on the balance sheet includes $3,179.1 million in cash and cash equivalents and $70.5 million in total available-for-sale debt securities[39]. - The company has $36.9 million in derivative liabilities recorded as of June 30, 2024[39]. - Interest income from foreign currency derivatives was reported at $3.4 million for the quarter ended June 30, 2024, compared to a loss of $(10.0) million in the previous quarter[34]. - The company’s interest expense from fair value hedges was $(2.7) million for the quarter ended June 30, 2024[34]. - The total liabilities related to derivatives are $40.1 million as of June 30, 2024[39]. Financial Position and Assets - Total assets as of October 1, 2023, were $4,394.3 million, with cash and cash equivalents at $3,551.5 million[41]. - Total liabilities amounted to $46.8 million, with derivative liabilities at $43.2 million[41]. - Inventory levels as of June 30, 2024, reached $1,854.7 million, an increase from $1,806.4 million on October 1, 2023[44]. - Goodwill balance as of June 30, 2024, was $3,183.6 million, down from $3,218.3 million on October 1, 2023[51]. - Total long-term investments as of June 30, 2024, were valued at $142.6 million, with U.S. government treasury securities at $104.7 million[41]. - Total short-term investments amount to $212.3 million, with marketable equity securities valued at $86.6 million[39]. Revenue and Earnings - Total net revenues for the quarter ended June 30, 2024, were $9,113.9 million, a slight decrease from $9,168.3 million in the same quarter last year[75]. - Net earnings attributable to Starbucks for the quarter were $1,054.8 million, compared to $1,141.7 million in the prior year, reflecting a decrease of approximately 7.6%[72]. - Basic EPS for the quarter was $0.93, down from $1.00 in the same quarter last year, indicating a decline of 7%[72]. - Operating income for the quarter was $1,517.5 million, compared to $1,583.9 million in the prior year, representing a decrease of about 4.2%[75]. Store Operations and Expenses - Store operating expenses for the quarter ended June 30, 2024, were $3,829.1 million, compared to $3,697.6 million for the same quarter in the previous year[47]. - Total store operating expenses for the three quarters ended June 30, 2024, were $11,404.7 million, compared to $10,998.9 million for the same period in the previous year[47]. - Operating lease costs for the quarter ended June 30, 2024, were $431.3 million, compared to $401.6 million for the same quarter in the previous year[59]. - Total lease costs for the three quarters ended June 30, 2024, were $2.1 billion, an increase from $1.96 billion in the prior year[59]. Shareholder Returns and Stock Activity - The company repurchased 12.8 million shares of common stock for $1,250.1 million during the three quarters ended June 30, 2024, compared to 6.9 million shares for $699.3 million in the same period last year[68]. - A quarterly cash dividend of $0.57 per share was approved by the Board of Directors, to be paid on August 30, 2024[68]. - The stock-based compensation expense for the quarter ended June 30, 2024, was $63.5 million, compared to $69.2 million for the same quarter in 2023, reflecting a decrease of approximately 2.5%[68]. Operational Challenges and Market Conditions - The company is closely monitoring the operational and financial impacts of labor union organizing efforts, with management believing the risk of material contingent loss is remote[71]. - Starbucks reported a 1% decrease in consolidated net revenues to $9.1 billion for Q3 fiscal 2024, down from $9.2 billion in Q3 fiscal 2023, primarily due to a decline in global comparable store sales and unfavorable foreign currency fluctuations[82]. - Global comparable store sales declined by 3% in Q3 fiscal 2024, with a 2% decline in the U.S. market and a 7% decline internationally[82]. - The operating margin decreased by 60 basis points to 16.7%, driven by increased promotional activity and investments in partner wages and benefits[82]. Future Outlook and Strategic Initiatives - The company anticipates continued progress on action plans to increase demand through innovative beverage and food offerings while expanding efficiency efforts[82]. - The company operates over 39,400 stores globally, reflecting a 6% increase from the prior year[82].

Financial Performance - Q3 consolidated net revenues were $9.1 billion, down 1% year-over-year, but up 1% in constant currency[1] - Total net revenues for the quarter ended June 30, 2024, were $9,113.9 million, a decrease of 0.6% compared to $9,168.3 million for the quarter ended July 2, 2023[25] - Total net revenues for the three quarters ended June 30, 2024, were $27,102.3 million, reflecting a 1.9% increase from $26,602.0 million for the same period last year[27] - Revenues for the quarter ended June 30, 2024, were $6,366.8 million, representing a 2% increase from $6,272.3 million in the prior year[42] - Total net revenues for the three quarters ended June 30, 2024, were $20,317.6 million, a 3.3% increase from $19,669.7 million in the previous year[29] Earnings and Margins - Net earnings attributable to Starbucks for the quarter ended June 30, 2024, were $1,054.8 million, down 7.6% from $1,141.7 million in the same quarter last year[25] - Net earnings for the quarter ended June 30, 2024, were $2,852.7 million, a decrease of 1.8% compared to $2,905.4 million for the same period in 2023[39] - Operating margin for North America contracted 70 basis points to 21.0% due to increased promotional activity and investments in wages[4] - Operating margin for the International segment contracted 340 basis points to 15.6%, driven by promotional activities and strategic investments[6] - Reported operating income (GAAP) was $1,517.5 million, a decrease of 4.2% from $1,583.9 million[53] - Non-GAAP operating income was $1,517.5 million, down 4.6% from $1,591.0 million[53] - Reported operating margin (GAAP) decreased to 16.7%, down 60 basis points from 17.3%[53] - Non-GAAP operating margin was 16.7%, a decline of 70 basis points from 17.4%[53] Store Performance and Growth - Active U.S. Starbucks Rewards membership totaled 33.8 million, up 7% year-over-year[2] - Global comparable store sales declined 3%, with a 5% decline in comparable transactions, partially offset by a 2% increase in average ticket[2] - The company opened 526 net new stores in Q3, ending with a total of 39,477 stores globally[2] - The company opened 133 net new stores in North America during the quarter, bringing the total to 18,198 stores[44] - The total number of stores in China increased to 7,306, a 13% increase from 6,480 stores in the previous year[43] Segment Performance - North America segment revenues increased 1% to $6.8 billion, driven by net new store growth of 5%[3] - International segment revenues declined 7% to $1.8 billion, impacted by a 5% unfavorable foreign currency translation[5] - Company-operated stores in North America generated revenues of $6,135.0 million, up 0.9% from $6,080.6 million year-over-year[29] - International total net revenues for the quarter ended June 30, 2024, were $1,842.1 million, a decrease of 6.6% from $1,972.9 million in the prior year[31] - Company-operated stores in the international segment generated revenues of $1,381.0 million, down 6.4% from $1,476.1 million year-over-year[31] Expenses and Costs - Store operating expenses as a percentage of company-operated store revenues increased to 50.9% from 48.9% year-over-year[25] - Total operating expenses in North America increased by 2.1% to $5,384.0 million from $5,273.9 million year-over-year[29] - Total operating expenses in the international segment were $1,557.1 million, a decrease of 2.6% from $1,599.2 million in the prior year[31] - Product and distribution costs decreased by 12.0% to $257.7 million, representing 58.8% of total net revenues, down from 65.3%[33] - Total operating expenses for the three quarters decreased by 14.4% to $838.2 million, representing 64.3% of net revenues, down from 69.6%[33] Cash Flow and Dividends - The company reported a net cash provided by operating activities of $4,560.0 million for the quarter, an increase from $4,063.7 million in the same period last year[39] - Cash dividends declared per share increased to $1.71 from $1.59 year-over-year[27] - Cash dividends paid during the quarter totaled $1,939.0 million, compared to $1,824.8 million in the previous year[39] - The company experienced a net cash used in investing activities of $1,849.5 million, up from $1,406.2 million in the prior year[39] Balance Sheet and Tax - Total assets as of June 30, 2024, were $30,111.8 million, an increase from $29,445.5 million on October 1, 2023[37] - Current liabilities decreased to $7,649.5 million from $9,345.3 million, reflecting improved liquidity[37] - The total shareholders' deficit was $7,945.4 million as of June 30, 2024, compared to $7,994.8 million on October 1, 2023[37] - The effective tax rate including noncontrolling interests was 24.4%, up from 23.7% in the previous year[27] Other Financial Metrics - Interest income and other, net, increased by 87.9% to $96.0 million compared to $51.1 million in the prior year[27] - Depreciation and amortization expenses for the three quarters ended June 30, 2024, were $1,117.6 million, a 10.5% increase from $1,011.2 million in the same period last year[27] - The company reported an income from equity investees of $194.9 million for the three quarters, an increase of 10.1% compared to $177.0 million last year[33] - For the quarter ended June 30, 2024, the operating loss was $437.9 million, an improvement of 5.3% from a loss of $462.5 million in the same quarter last year[34]

SHENZHEN, CHINA - 2024/07/24: People seen around the Starbucks coffee store in Shenzhen, China. ... [+] (Photo by Serene Lee/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty Images[Note: Starbucks’ fiscal year 2023 ended October 1]Starbucks stock (NASDAQ: SBUX), the world’s leading roaster, marketer, and retailer of specialty coffee worldwide, is scheduled to report its Q3 2024 results on Tuesday, July 30. We expect SBUX stock to likely trade higher with revenues and earnings beati ...

A major activist investor just took a stake in the coffee giant. Could positive changes be on the way?Notable activist investor Elliott Investment Management recently took a substantial position in Starbucks (SBUX 1.00%), according to a Wall Street Journal report. This isn't surprising, as the coffee giant has actually produced negative investor returns over the past five years despite posting strong growth in the business. In this video, Fool.com contributors Matt Frankel and Lou Whiteman give their takes ...

Analyst Estimates for Q3 2024Q2 2024Q3 2023Revenue$9.22 billion$8.56 billion$9.17 billionDiluted EPS93 cents68 cents99 centsNet Income$1.05 billion$772.4 million$1.14 billion Key Metric: Same-Store Sales Same-store sales declined in Starbucks' second-quarter earnings. That result contributed to the stock's worst day of the year so far, with the shares falling nearly 16%. Chief Executive Officer (CEO) Laxman Narasimhan said in the second-quarter earnings call that customers had been "more exacting" about ...

Starbucks Corporation (SBUX) is slated to release third-quarter fiscal 2024 numbers on Jul 30, after the closing bell.In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 13.9%. The company’s top and the bottom line declined 1.8% and 8.1% year over year, respectively.SBUX surpassed earnings in the trailing two out of four quarters. The average surprise over this period is a negative 0.4%, as shown in the chart below.Image Source: Zacks Investment ResearchTrend in Estim ...

Why now might be a great time to buy Starbucks stock.According to recent reports, billionaire Paul Singer and his activist hedge fund Elliott Investment Management have taken a large position in Starbucks (SBUX -1.82%). The coffee house operator has seen its stock struggle in recent years. It's down over 15% in the past five years, while the S&P 500 is up over 85% during the same stretch.With Elliott's involvement, should investors follow suit and pile into Starbucks shares?Elliott's Starbucks stakeElliott' ...

These businesses are likely to get a whole lot bigger and more valuable in the years ahead.Investing in growth stocks can be an easy way to increase your portfolio's value over time. While dividend stocks might seem safer and can offer recurring income, stocks focused on growth can generate more significant returns in the long run.And if you're looking for promising growth stocks to buy for less than $100, there are many options to consider, including Walmart (WMT -0.82%), Starbucks (SBUX -1.82%), and Shopi ...

Starbucks (SBUX) closed the latest trading day at $73.53, indicating a -1.55% change from the previous session's end. This change lagged the S&P 500's daily loss of 0.51%. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, lost 0.93%.Heading into today, shares of the coffee chain had lost 5.65% over the past month, lagging the Retail-Wholesale sector's loss of 2.37% and the S&P 500's loss of 0.26% in that time.Investors will be eagerly watching for the performance of Starbucks in its upcomi ...

Wall Street analysts expect Starbucks (SBUX) to post quarterly earnings of $0.93 per share in its upcoming report, which indicates a year-over-year decline of 7%. Revenues are expected to be $9.22 billion, up 0.6% from the year-ago quarter.The consensus EPS estimate for the quarter has undergone a downward revision of 1.1% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Prior to a comp ...