Starbucks(US:SBUX)2024-07-30 20:07Financial 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]