Starbucks Corp SBUX Earnings

Average daily transactions per U.S. store remain lower than they were before the pandemic, the company said. Our latest brand tracker shows Starbucks remains Chinese customers’ first choice in the away-from-home coffee category. Also, Starbucks is the brand leader in terms of brand affinity, visitation and vacancy. And despite all the COVID disruptions we faced in Q1, our customer connection score also reached another record high in Q1.

In fact, the coffee chain beat analyst expectations on US same-store sales and profits. As a few point of clarification on guidance, in China, we now expect negative comps to continue through the second quarter, followed by improvement in the balance of the year. Another point of clarification is that China store growth remains unchanged as we execute our strategy to expand in new cities. Also, our guidance continues to include the impacts of significant investments related to our reinvention plan and inflationary pressures which largely remain comparable to what we had originally anticipated.

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So the combination of all of that gives us confidence that reaffirming our guidance is right given the position we’re in today. In terms of the question around Q1 and what drove our business outside of the headwinds in China. So if you took headwinds out, to your point, we would have been above expectations.

Alshaya is our license partner in the Middle East for the last 23 years and among our largest international licensees with over 1,800 stores across 13 markets. They reported their strongest quarter with the Starbucks brand ever in Q1. We added 370 new stores in international in Q1 and now operate 18,700 stores across 84 markets, 43% company-operated and 57% licensed. Strong growth in our international license business reflects the outside returns the Starbucks brand delivers to our licensees, driving increased investment by our licensees in our business and growing customer engagement with our Starbucks brand around the world.

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• The international travel is just starting to come back as they start to go to other markets as well, we’re going to see further tailwind going forward.
• So we’re just going to keep driving the program and I think our customers will have a lot to celebrate in the years ahead.
• They just revealed what they believe are theten best stocksfor investors to buy right now…
• “There’s much more opportunity and much more work ahead,” said Mr. Schultz.
• All of this led to Starbucks executives doubling down on their optimistic outlook for 2023.
• On today’s call, I will highlight the drivers of our performance in Q1 and provide an update on the progress of our reinvention initiatives.

Only weeks from now, Lax will take full control of the company and together with our leadership team, bring reinvention to life, guide Starbucks into a new era of growth, and begin writing the next chapters of our storied history. I cannot be more confident that Lax is the right CEO at the right time for Starbucks. And Starbucks Coffee Company domestically and around the world is in great hands with him as the CEO.

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In the U.S., Starbucks saw same-store sales growth of 10%, thanks to customers spending more and a 1% bump in traffic. Customers bought a record $3.3 billion in gift cards over the holiday season. Starbucks assumes no obligation to update any of these forward-looking statements or information.

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Obviously, three years for the China consumer dealing with COVID is a very, very long time. And there’s at least some concern that consumers’ behavior may be slightly beyond the short term, it may be affected in terms of how people kind of interact and gather and what have you. Now when you think about that as it pertains tables of historical exchange rates to the united states dollar to the balance of the year, we’re able to reaffirm our guidance because even though we’re seeing headwinds in China and we continue to believe we’ll have strong momentum across the other businesses. You can imagine there are a lot of other factors at play continuing inflationary pressures, economic challenges.

Past Earnings

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They’re returning to our stores to enjoy the Starbucks Experience. We can now go full steam with our new store development, and we can continue to maximize our omnichannel capability and opportunities to be a part of our customer new regular routine post COVID. And then Japan, which is our third largest company-operated market, is also continuing with significant growth. This is our eighth consecutive quarter of strong revenue growth, driven by not only product but actually digital. Within Japan, we are rolling out the digital flywheel, Mobile Order & Pay is fully penetrated.

Starbucks stock falls as earnings — weighed down by China sales — miss estimates

Licensed stores this quarter, which posted revenue growth in excess of 30% and 15% system comp growth over the prior year Q1 with strength across the portfolio. Performance was particularly strong in retail and travel as pre-COVID behavior normalcy returns, with U.S. licensed store revenue indexing at roughly 140% of pre-pandemic levels. Grocery also experienced strong growth, powered by the continued rollout of Starbucks Connect despite the overall decline in customer traffic across the rest of grocery store industry. And except for China, very strong sales and comp growth in every international market we are in. We posted strong results despite challenging global consumer and inflationary environments. Outside of China and excluding the impact of foreign currency translation, our diverse international markets across the globe continued to outperform in Q1.

With that said, they do expect 2023 to be the toughest year in this window – as there is still much uncertainty surrounding China and COVID-19 in the immediate future. Discover dividend stocks matching your investment objectives with our advanced screening tools. Quickest stock price recoveries post dividend payment. This trading strategy invovles purchasing a stock just before the ex-dividend date in order to collect the dividend and then selling after the stock price has recovered. Starbucks shares dropped nearly 2% after hours, after falling less than 1% in the regular session to close at $109.15, and seesawed up and down as company executives held a conference call with analysts.

And we’ve seen that be a continued contributor over the last couple of years since we launched it. So that takes us to the more than 30 million members we have today. And I just wanted to highlight the fact that we have been taking care of our partners in the last three years and this year and in the last quarter, you could see that we have all-time low turnover rate and people are staying with us. And so far, I don’t see any issue at all with our hiring or our people staying with Starbucks.

Look out for SBUX’s next earnings release expected on May 02, 2023. For the next earning release, we expect the company to report earnings of $0.64 per share, reflecting a year-over-year increase of 8.47%. The Barchart Technical Opinion widget shows you today’s overally Barchart Opinion with general information on how to interpret the short and longer term signals.

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