Starbucks Corporation reported its financial results for the second quarter of fiscal year 2024 on April 30, 2024. The report revealed a 2% decline in consolidated net revenues, amounting to $8.6 billion, attributed to a challenging operating environment. The quarter saw a 4% decrease in global comparable store sales, with a 6% drop in transactions partly offset by a 2% rise in average ticket prices. In North America, comparable store sales fell by 3%, and international sales saw a 6% decline, with China experiencing an 11% decrease. Despite the downturn, Starbucks opened 364 new stores, ending the quarter with a total of 38,951 stores globally. The company's GAAP operating margin contracted by 240 basis points to 12.8%, primarily due to increased investments in wages and benefits, promotional activities, and administrative costs. GAAP earnings per...Show More

Starbucks Corporation reported its financial results for the second quarter of fiscal year 2024 on April 30, 2024. The report revealed a 2% decline in consolidated net revenues, amounting to $8.6 billion, attributed to a challenging operating environment. The quarter saw a 4% decrease in global comparable store sales, with a 6% drop in transactions partly offset by a 2% rise in average ticket prices. In North America, comparable store sales fell by 3%, and international sales saw a 6% decline, with China experiencing an 11% decrease. Despite the downturn, Starbucks opened 364 new stores, ending the quarter with a total of 38,951 stores globally. The company's GAAP operating margin contracted by 240 basis points to 12.8%, primarily due to increased investments in wages and benefits, promotional activities, and administrative costs. GAAP earnings per share decreased by 14% to $0.68, while non-GAAP earnings per share also fell by 8% to $0.68. Starbucks Rewards loyalty program in the U.S. saw a 6% increase in active members, reaching 32.8 million. CEO Laxman Narasimhan acknowledged the quarter's results did not meet expectations but expressed confidence in the company's long-term strategy and the 'Triple Shot Reinvention with Two Pumps' plan. CFO Rachel Ruggeri emphasized a disciplined approach to capital allocation in response to the complex environment. The report also included updates on Starbucks' bond issuance, loyalty partnerships, inclusive store designs, and plans for expansion into Ecuador and Honduras.