Starbucks boosted its sales and earnings for Q1 2024 but cut its full-year guidance after missing its sales and earnings projections. Highlights from an earnings report are as follows:
- Total revenues rose 8.2% from $8.7 billion in Q1 2023 to $9.4 billion for the quarter ending Dec. 31, 2023.
- Revenue for company-operated stores rose 9.5% from $7.08 billion to $7.75 billion in the comparative quarters.
- Net earnings rose 19.8% from $855.2 million to $1.01 billion.
- Net earnings per common share on a diluted basis rose 21.6% from 74 cents to 90 cents.
- North America revenues rose 9% from $6.55 billion to $7.12 billion, primarily driven by a 5% increase in comparable store sales, driven by a 4% increase in average tickets and a 1% increase in comparable transactions, net new company-operated store growth of 4% over the past 12 months, as well as growth in licensed store business.
- International revenues rose 9.9% from $1.68 billion to $1.846 billion, primarily driven by net new company-operated store growth of 12% over the past 12 months and a 7% increase in comparable store sales, driven by an 11% increase in comparable transactions and a 3% decline in average ticket.
- Revenue for licensed stores rose 6.5% from $1.12 billion to $1.19 billion.
- Revenue from “other” stores fell 6.4% from $510.9 million to $478 million.
- Global comparable store sales increased 5%, driven by a 3% increase in comparable transactions and 2% increase in average ticket.
- North America and U.S. comparable store sales increased 5%, driven by a 4% increase in average ticket and 1% increase in comparable transactions
- International comparable store sales increased 7%, driven by a 11% increase in comparable transactions and 3% decline in average ticket; China comparable store sales increased 10%, driven by a 21% increase in comparable transactions and 9% decline in average ticket.
- The company opened 549 net new stores in Q1, ending the period with 38,587 stores: 51% company-operated and 49% licensed.
- Net revenues for the international segment grew 10% over Q1 FY23 to $1.8 billion in Q1 FY24, primarily driven by net new company-operated store growth of 12% over the past 12 months and a 7% increase in comparable store sales, driven by an 11% increase in comparable transactions and a 3% decline in average ticket. These increases were partially offset by approximately 2% unfavorable impact from foreign currency translation.
- Net revenues for the channel development segment declined 6% to $448 million, primarily due to a decline in revenue in the Global Coffee Alliance following the sale of Seattle’s Best Coffee brand in Q2 FY23 and a decrease in global ready-to-drink revenue.
Shares traded today at $94.10 against a 52-week range of $89.21 to $115.48.
The $9.4 billion in quarterly revenue missed analyst expectations by $230 million, while the non-GAAP EPS of 90 cents missed expectations by 4 cents, according to Seeking Alpha.
“Despite headwinds, our brand is very strong, and that coupled with innovation and a relentless focus on our green apron partners form long-term differentiators, along with focused execution on Triple Shot Reinvention, will drive balanced and attractive earnings growth,” CEO Laxman Narasimhan said in the press release.
The company cut its full-year sales and guidance after missing its expectations, and now expects 2024 total revenue growth to be 7% to 10%, versus the previous expectation of 10% to 12%, according to Yahoo Finance. U.S. and global same-store sales are expected to increase 4% to 6%, both down from the previous 5% to 7% range.
SOURCE: Fast Casuals
