Starbucks (SBUX) reported $8.56 billion in revenue for the quarter ended March 2024, representing a year-over-year decline of 1.8%. EPS of $0.68 for the same period compares to $0.74 a year ago.The reported revenue represents a surprise of -6.31% over the Zacks Consensus Estimate of $9.14 billion. With the consensus EPS estimate being $0.79, the EPS surprise was -13.92%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine thei ...

Starbucks (SBUX) came out with quarterly earnings of $0.68 per share, missing the Zacks Consensus Estimate of $0.79 per share. This compares to earnings of $0.74 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -13.92%. A quarter ago, it was expected that this coffee chain would post earnings of $0.92 per share when it actually produced earnings of $0.90, delivering a surprise of -2.17%.Over the last four quarters, the company ...

ToplineShares of Starbucks fell to a 21-month low in extended trading on Tuesday on the heels of a dismal quarterly earnings report missing analysts’ expectations amid faltering sales in the first few months of 2024.Shares of Starbucks hit their lowest point since July 2022.Getty Images Key FactsStarbucks’ stock plummeted minutes after 4 p.m. Tuesday afternoon, dropping more than 10% to nearly $80 per share—its lowest point since July 2022. That single-day drop also represents the coffee chain’s worst day ...

Starbucks Corporation (NASDAQ: SBUX) has reported a revenue miss in its Q1 2024 earnings report, disappointing investors and causing the SBUX stock price to drop by over 10% in the market after hours.Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.The company’s consolidated net revenues for the quarter were down 2% to $8.6 billion, falling short of market expectations. The decline was attributed to a challenging operating environment faced by the coff ...

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]. Cash Flow and Hedging - As of October 1, 2023, the company reported cash flow hedges for coffee with a net gain of $16.2 million, while dairy hedges showed a loss of $1.3 million[29]. - The company has cross-currency swaps with a net investment hedge showing a gain of $127.9 million as of March 31, 2024[29]. - The company reported a loss of $5.1 million from interest rate hedges as of March 31, 2024[29]. - The company recorded gains from foreign currency hedges amounting to $30.6 million as of March 31, 2024[29]. - The company reported a total of $135.3 million in gains from foreign currency debt hedges as of March 31, 2024[29]. - The notional amount of outstanding derivative contracts for cross-currency swaps increased to $1,746 million from $1,076 million since October 1, 2023[34]. - The fair value of outstanding derivative contracts on the balance sheet included $13.0 million in cross-currency swaps as of March 31, 2024[36]. - The company recorded a cumulative amount of fair value hedging adjustment of $(31.4) million related to long-term debt as of March 31, 2024[36]. - The fair value of dairy-related derivative instruments on the balance sheet was $0.5 million as of March 31, 2024[36]. Financial Performance - Total net revenues for the quarter ended March 31, 2024, were $8,563.0 million, a decrease from $8,719.8 million in the same quarter of the previous year[69]. - Operating income for the quarter was $1,098.9 million, compared to $1,327.5 million in the same quarter of the previous year, reflecting a decrease of approximately 17.2%[74]. - Net earnings attributable to Starbucks for the quarter were $772.4 million, down from $908.3 million, a decrease of $135.9 million or 15%[88]. - The effective tax rate for the quarter ended March 31, 2024, was 22.2%, a decrease from 24.9% in the same period of fiscal 2023, primarily due to an alternative tax approach in a foreign jurisdiction[88]. Revenue and Sales Trends - Beverage sales accounted for 60% of total revenues, amounting to $5,160.6 million for the quarter ended March 31, 2024[69]. - Global comparable store sales declined 4%, with a 3% decline in the U.S. market and a 6% decline internationally[80]. - Revenues from company-operated stores decreased by $90 million, primarily due to a $253 million decline in comparable store sales[83]. - Incremental revenues from 1,454 net new company-operated stores contributed $255 million, representing an 8% increase over the past 12 months[83]. Store Operations and Expenses - Store operating expenses for the quarter ended March 31, 2024, were $3,724.1 million, compared to $3,636.0 million for the same quarter in 2023, reflecting an increase of 2.4%[46]. - Total operating expenses for the quarter were $7,532.1 million, slightly down from $7,535.0 million, reflecting a decrease of $2.9 million[88]. - Store operating expenses as a percentage of total net revenues increased by 180 basis points for the second quarter of fiscal 2024, driven by increased investments in store partner wages and benefits (approximately 160 basis points) and increased promotional activity (approximately 60 basis points)[86]. Debt and Financing - Total long-term debt amounts to $15.7 billion as of March 31, 2024, with maturities extending to 2050[57]. - The company has a $3.0 billion unsecured five-year revolving credit facility, maturing on September 16, 2026, with no amounts outstanding as of March 31, 2024[52]. - The company has the option to increase its revolving credit facility by an additional $1.0 billion, subject to negotiation[52]. - The company had no amounts outstanding under its commercial paper program as of March 31, 2024[53]. Shareholder Returns - The company repurchased 12.8 million shares of common stock for $1,250.1 million during the two quarters ended March 31, 2024, compared to 4.9 million shares for $495.3 million during the same period in the previous year[67]. - A quarterly cash dividend of $0.57 per share was approved by the Board of Directors, to be paid on May 31, 2024, to shareholders of record as of May 17, 2024[67]. Future Outlook and Strategic Initiatives - The company anticipates significant impacts from new FASB guidance on income tax disclosures effective for the fiscal year ending September 27, 2026[24]. - The company is evaluating the impact of SEC climate disclosure rules, with phased-in requirements starting January 1, 2025[24]. - The company expects to adopt new segment disclosure requirements for the fiscal year ending September 28, 2025, with no material impact anticipated on consolidated financial statements[24]. - The company anticipates that the complex global operating environment may continue to impact results for the remainder of fiscal 2024[80]. - The Triple Shot Reinvention strategy is progressing, enhancing capabilities and supporting long-term growth[80].

Financial Performance - Q2 consolidated net revenues decreased by 2% to $8.6 billion, with a 1% decline on a constant currency basis[2] - Global comparable store sales declined by 4%, driven by a 6% decline in comparable transactions, partially offset by a 2% increase in average ticket[2] - North America segment revenues were flat at $6.4 billion, with a 3% decline in comparable store sales[3] - International segment revenues decreased by 5% to $1.8 billion, impacted by a 6% decline in comparable store sales and approximately 5% unfavorable foreign currency translation[5] - Channel Development segment revenues fell by 13% to $418.2 million, primarily due to a decline in revenue from the Global Coffee Alliance[8] - Total net revenues for the quarter ended Mar 31, 2024, were $8,563.0 million, a decrease of 1.8% compared to $8,719.8 million for the quarter ended Apr 2, 2023[24] - Net earnings attributable to Starbucks for the quarter ended Mar 31, 2024, were $772.4 million, down 15.0% from $908.3 million in the same quarter last year[24] - Earnings per diluted share for the quarter ended Mar 31, 2024, were $0.68, a decrease of 13.9% compared to $0.79 for the quarter ended Apr 2, 2023[24] - For the two quarters ended Mar 31, 2024, total net revenues were $17,988.3 million, an increase of 3.2% from $17,433.8 million in the prior year[26] - Net earnings attributable to Starbucks for the two quarters ended Mar 31, 2024, were $1,796.8 million, reflecting a 1.9% increase from $1,763.6 million in the same period last year[26] Store Operations - The company opened 364 net new stores in Q2, ending the period with 38,951 stores globally[2] - The total number of stores increased to 38,951 as of March 31, 2024, up from 36,634 as of April 2, 2023, representing a 6% growth[43] - Company-operated store revenues accounted for 82.4% of total net revenues for the quarter ended Mar 31, 2024[24] - Company-operated store revenues in North America increased by 4.2% to $12,105.7 million compared to $11,613.2 million for the same two quarters last year[28] - Company-operated store revenues in International markets rose by 3.4% to $2,702.2 million, compared to $2,612.5 million in the previous year[30] Expenses and Margins - GAAP operating margin contracted by 240 basis points year-over-year to 12.8%[2] - Store operating expenses as a percentage of company-operated store revenues increased to 52.8% for the quarter ended Mar 31, 2024, compared to 50.9% in the same quarter last year[24] - Total operating expenses for the quarter ended Mar 31, 2024, were $7,532.1 million, virtually unchanged from $7,535.0 million in the prior year[24] - Operating income for North America was $1,148.3 million, representing an operating margin of 18.0%, down from 19.1% in the previous year[28] - Operating income for International operations decreased to $233.8 million, with an operating margin of 13.3%, down from 17.0% year-over-year[30] - Total operating expenses in North America increased by 1.3% to $5,231.7 million, compared to $5,162.7 million last year[28] - Total operating expenses in International markets decreased by 1.1% to $1,523.7 million from $1,540.9 million year-over-year[30] Earnings and Dividends - The Board of Directors declared a cash dividend of $0.57 per share, demonstrating a commitment to consistent value creation for shareholders[15] - Cash dividends declared per share increased to $1.14 for the two quarters ended Mar 31, 2024, compared to $1.06 in the same period last year[26] - Cash dividends paid for the quarter ended March 31, 2024, were $1,293.5 million, an increase from $1,217.4 million for the quarter ended April 2, 2023[38] Tax and Liabilities - The effective tax rate for the quarter ended Mar 31, 2024, was 22.2%, down from 24.9% in the same quarter last year[24] - Current assets decreased to $6,465.0 million as of March 31, 2024, down from $7,303.4 million on October 1, 2023[36] - Total liabilities increased to $37,805.4 million as of March 31, 2024, compared to $37,433.3 million on October 1, 2023[36] - The company's retained deficit increased to $(7,970.7) million as of March 31, 2024, from $(7,255.8) million on October 1, 2023[36] - Total assets decreased slightly to $29,363.2 million as of March 31, 2024, from $29,445.5 million on October 1, 2023[36] Cash Flow and Investments - The company reported a net cash provided by operating activities of $2,889.9 million for the quarter ended March 31, 2024, compared to $2,360.8 million for the quarter ended April 2, 2023[38] - The company reported a net cash used in investing activities of $1,264.0 million for the quarter ended March 31, 2024, compared to $907.0 million for the quarter ended April 2, 2023[38] Operating Losses and Impairments - The company reported an operating loss of $499.5 million for the quarter ended March 31, 2024, compared to an operating loss of $467.2 million in the same quarter of the previous year, reflecting a 6.9% increase in losses[33] - The company experienced a loss on retirement and impairment of assets amounting to $42.5 million for the quarter ended March 31, 2024[38] Non-GAAP Measures - Reported GAAP operating income decreased by 17.2% to $1,098.9 million compared to $1,327.5 million in the previous year[51] - Non-GAAP operating income declined by 11.7% to $1,098.9 million from $1,245.1 million year-over-year[51] - Operating margin as reported (GAAP) fell by 240 basis points to 12.8% from 15.2%[51] - Diluted net earnings per share (GAAP) decreased by 13.9% to $0.68 compared to $0.79 in the prior year[51] - Non-GAAP EPS declined by 8.1% to $0.68 from $0.74 year-over-year[51] - Non-GAAP operating margin decreased by 150 basis points to 12.8% from 14.3%[51] - The company reported no restructuring and impairment costs for the current quarter[51] - There were no transaction and integration-related costs reported for the current quarter[51] - The gain from the sale of assets was reported as a loss of $91.3 million[51] - The company experienced a constant currency change impact of 1.5% on non-GAAP operating income[51]

The coffee titan likes to return cash to shareholders through dividends and stock buybacks.Like many of its peers, Starbucks (SBUX 0.47%) allocates some of its excess cash each year toward buying back its own stock. The company uses that spending as a way to return cash to shareholders. That's because repurchasing your stock, to the extent that it reduces the outstanding share count, leaves existing shareholders with a larger relative ownership of the company. Earnings per share tend to expand more quickly, ...

Starbucks logo is seen on a cup at the cafe in Krakow, Poland on April 26, 2024. (Photo by Jakub ... [+] Porzycki/NurPhoto via Getty Images)NurPhoto via Getty Images[Note: Starbucks Starbucks ’ fiscal year 2023 ended October 1]Starbucks stock (NASDAQ NASDAQ : SBUX), the world’s leading roaster, marketer, and retailer of specialty coffee worldwide, is scheduled to report its Q2 2024 results on Tuesday, April 30. We expect SBUX stock to likely trade higher with revenues and earnings beating expectations sligh ...

Based on its track record of compounding shareholder capital, investors have reasons to remain optimistic.Over more than five decades Starbucks (SBUX 0.47%) has become a ubiquitous coffeehouse chain with one of the world's most recognizable consumer brands. And shareholders who've held on along the way have also been rewarded thanks to a steadily rising stock price.As of this writing, this top restaurant enterprise carries a market cap of $100 billion. That's after shares have fallen 30% from their peak pri ...

After a period of increased volatility, the stock market is experiencing a short-term resurgence, with technology sector players dominating. Indeed, as April draws to a close, several stocks are poised to reach new milestones, such as hitting $100 billion market capitalization. In this regard, Finbold has identified the following two equities likely to reach this threshold in May.Starbucks As of April 2024, Starbucks (NASDAQ: SBUX) is close to reaching a market capitalization of $100 billion. With a strong ...