A store of Starbucks Coffee shop chain located in Amsterdam city center with people sitting inside, enjoying a coffee after shopping in the cafe, while others are walking by.
Nicolas Economou | Nurphoto | Getty Images
Starbucks reported earnings after the bell. Here are the results.
- Earnings per share: 68 cents vs. 79 cents per share expected by LSEG
- Revenue: $8.56 billion vs $9.13 billion expected by LSEG
After Starbucks delivered a weak report last quarter, many analysts aren’t expecting dramatic improvement in demand until the second half of the fiscal year. The coffee giant has seen traffic to its cafes fall as its rivals in China lean into discounting and some U.S. consumers boycott its drinks. Other quick-service chains, like McDonald’s, have reported that low-income customers are still pulling back their restaurant spending this quarter, signaling that Starbucks could see the same trend.
Starbucks has said that those issues are transitory, and it expects sales to rebound. It’s been leaning heavily into advertising and promoting its new seasonal drinks, like a line of Spicy Lemonade Refreshers.
For fiscal 2024, the company anticipates revenue growth of 7% to 10% and global same-store sales growth in a range of 4% to 6%. The company is also expecting earnings per share growth of 15% to 20%.
Shares of Starbucks have fallen 22% over the last year, dragging its market value down to $100 billion.
This story is developing. Please check back for updates.
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