Starbucks Corporation (NASDAQ:SBUX) shares are trading higher on Wednesday.
According to Benzinga Pro, SBUX stock has lost over 25% in the past year. Investors can gain exposure to the stock via Global X Millennial Consumer ETF (NASDAQ:MILN) and SPDR Select Sector Fund – Consumer Discretionary (NYSE:XLY).
Yesterday, the company reported third-quarter results where revenues of $9.1 billion missed the consensus estimate of $9.24 billion.
The coffee giant reported quarterly earnings of 93 cents per share, in line with analyst estimates.
The company opened 526 net new stores in the third quarter, ending the period with 39,477 stores: 52% company-operated and 48% licensed.
"Our efficiency efforts, which are tracking ahead of expectations, partially offset investments associated with the cautious consumer environment," commented Rachel Ruggeri, chief financial officer.
However, the company is already observing promising signs in its U.S. operations, such as the success of its new products.
For example, its Summer-Berry Refreshers drinks, featuring boba-style pearls, set a new record for the best week-one product launch, reported CNBC.
Looking ahead to the next quarter, the company will also reintroduce its Pumpkin Spice drinks, a long-standing favorite that has been popular since its debut over twenty years ago.
In the quarter under review, net revenues for the North America segment increased 1% year over year to $6.8 billion, primarily driven by net new company-operated store growth of 5% over the past 12 months, as well as growth in licensed store business.
International comparable store sales fell by 7%, due to a 4% decrease in average ticket size and a 3% drop in comparable transactions.
In China, comparable store sales decreased by 14%, with both average ticket size and comparable transactions dropping by 7%.
The company reiterated the outlook it provided last quarter, added CNBC.
Starbucks' board also declared a cash dividend of 57 cents per share, payable on Aug. 30 to shareholders of record as of Aug. 16.
Price Action: SBUX shares are trading higher by 4.10% to $79.05 premarket at last check Wednesday.
