Starbucks has reported attributable net earnings of $1.05bn for the third quarter (Q3) of the fiscal year 2024, down 7.6% from $1.14bn a year previously.
For the quarter ended 30 June 2024, the company's total net revenues also saw a slight decrease of 0.6%, amounting to $9.11bn compared to $9.17bn in the same quarter of 2023.
The revenue from company-operated stores in the latest quarter was $7.51bn, a decrease of 0.5% compared to $7.55bn in the same period of the previous year.
Licensed stores also experienced a revenue drop of 0.6% to $1.12bn, compared to $1.13bn in 2023.
Global comparable store sales saw a 3% decline, attributed by the company to a 5% fall in comparable transactions and slightly offset by a 2% rise in the average ticket.
In North America, comparable store sales fell by 2%, driven by a 6% drop in transactions, although this was partly offset by a 3% increase in average ticket size.
The US market mirrored this trend with a similar 2% decline in comparable store sales, partially offset by a 4% increase in the average ticket.
International comparable sales dipped 7% due to a 4% drop in the average ticket and a 3% fall in transactions.
In China, the company’s comparable store sales declined 14%, with both average ticket and transactions declining by 7%.
Despite the downturn in sales, Starbucks expanded its global presence by opening 526 net new stores in the third quarter of 2024, bringing the total count to 39,477 stores, of which 52% are company-operated and 48% are licensed.
With 15,730 stores in the US and 7,306 in China, the two countries remain its largest markets, together accounting for 61% of its total store portfolio.
Starbucks' operating expenses for Q3 2024 saw a slight increase of 0.2% to $7.67bn while operating income fell by 4.2% to $1.51bn compared to $1.58bn in Q3 2023.
In the nine months ending 30 June 2024, the company's total net revenues increased by 1.9% to $27.10bn from $26.6bn in 2023.
During the period, the company-operated stores revenue was $22.32bn, up by 2.5% from $21.78bn in 2023. In the same period, Starbucks' licensed stores revenue was $3.37bn, up by 1.5% from $3.32bn a year previously.
Total operating expenses for the nine months were $23.19bn, an increase of 2.2% from $22.70bn in 2023.
The company’s attributable net earnings totalled $2.85bn, down by 1.8% from $2.90bn a year previously.
Starbucks CEO Laxman Narasimhan said: “Our three-part action plan is beginning to work and driving operational improvements that we expect to improve financial performance.
“Our growing culture of focused innovation and relentless execution continues to enhance our capabilities, while helping return the business to sustainable growth.”
