Key Takeaways
Starbucks reported its fiscal second-quarter earnings on Tuesday, with results falling short of analyst expectations. Revenue declined 2% year-over-year to $8.6 billion, missing the consensus estimate of $9.129 billion. Earnings per share came in at 68 cents, below the expected 79 cents.
Global comparable store sales declined 4%, driven by a 6% decrease in transactions and a 2% increase in average ticket price. North America saw a 3% decline in comps, while China and international markets experienced steeper drops of 11% and 6%, respectively.
Despite the disappointing results, Starbucks remains optimistic about its future. The company opened 364 net new stores in the quarter and ended the period with 38,951 total locations. Active U.S. rewards memberships also grew 6% year-over-year to 32.8 million.
"In a highly challenged environment, this quarter’s results do not reflect the power of our brand, our capabilities or the opportunities ahead,” said Laxman Narasimhan, CEO of Starbucks. “It did not meet our expectations, but we understand the specific challenges and opportunities immediately in front of us. We have a clear plan to execute and the entire organization is mobilized around it.”
The company's board declared a cash dividend of 57 cents per share, payable on May 31 to shareholders of record as of May 17. Starbucks will discuss its fiscal-year 2024 financial targets during its earnings call, which is scheduled for 5 p.m. ET.
Following the earnings release, Starbucks shares fell 9.92% after hours to $88.49.