- Starbucks’ overall comparable sales decreased by 2%, missing the estimate of a 1.5% decline.
- In North America, sales saw a reduction of 2%, which was slightly better than the estimated 2.49% drop.
- In the US, sales also decreased by 2%, outperforming the anticipated decline of 2.53%.
- International comparable sales remained flat, while a 2.09% increase had been expected.
- China, however, saw a sales increase of 2%, exceeding its 1.44% estimate.
- The company’s adjusted earnings per share (EPS) was 50 cents, below the expected 65 cents.
- Adjusted operating margin was reported at 10.1%, missing the 11.6% estimate.
- The operating margin came in at 9.9%, lower than the anticipated 12%.
- The average ticket price increased by 1%, which was below the estimated 1.38% rise.
- In North America, the average ticket price rose by 1%, slightly under the expected 1.33% increase.
- The US average ticket price rose by 2%, surpassing the forecasted 1.5% increase.
- International average ticket prices fell by 1%, missing the expectation of a 0.38% increase.
- In China, the average ticket price dropped by 4%, aligning with the estimate.
- Comparable transactions internationally increased by 1%, falling short of the 2.26% estimate.
- North American transactions decreased by 3%, better than the 4.26% estimated drop.
- In the US, transactions declined by 4%, which was better than the expected 4.5% drop.
- International transactions increased by 1%, although 2.26% was anticipated.
- China saw a 6% increase in transactions, exceeding the 5.57% estimate.
- The quarter’s EPS was negatively impacted by an 11-cent effect from a “discrete tax item.”
- CEO Brian Niccol expressed optimism, stating that the company is ahead of schedule in its turnaround efforts.
Starbucks Corp on Smartkarma
Analysts at Baptista Research on Smartkarma have been closely monitoring Starbucks Corp‘s recent performance. In a report titled “Starbucks Stumbles Again: Is the Coffee Giant’s Comeback Plan Falling Flat?” by Baptista Research, the analysts highlighted concerns over Starbucks’ fiscal second-quarter 2025 results, which fell short of Wall Street expectations. The report emphasized a 6% decline in Starbucks’ stock value following a 40% year-over-year drop in earnings per share and a 1% slide in global comparable store sales, with a notable 4% decrease in transaction volume in North America.
Additionally, Baptista Research published another report titled “Starbucks’ Sales Decline,” shedding light on Starbucks Corporation’s first-quarter fiscal year 2025 results. The report revealed stagnant revenue of $9.4 billion compared to the previous year, accompanied by a 4% decline in global comparable store sales. This analysis also pointed out a global operating margin of 11.9% and an earnings per share (EPS) of $0.69, providing insights into the current business performance and strategic direction of the coffee giant.
A look at Starbucks Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 0 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Looking at the Smartkarma Smart Scores for Starbucks Corp, the company shows a promising outlook for the long term. With a strong resilience score of 4, Starbucks appears well-positioned to weather any market challenges. This indicates that the company is equipped to handle unforeseen circumstances and maintain its performance.
Furthermore, Starbucks also scores well in both the dividend and growth categories, with scores of 3 for each. This suggests that the company not only provides a steady dividend for investors but also has the potential for future expansion and development. Combining these factors with a solid momentum score of 3, Starbucks Corp demonstrates a favorable overall outlook, making it an interesting prospect for investors seeking stability and potential growth in the long run.
### Summary: Starbucks Corporation retails, roasts, and provides its own brand of specialty coffee. The Company operates retail locations worldwide and sells whole bean coffees through its sales group, direct response business, supermarkets, and on the World Wide Web. Starbucks also produces and sells bottled coffee drinks and a line of ice creams. ###
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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