Starbucks Reports Better-Than-Expected Q3 Earnings Amid US Turnaround
Starbucks reported better-than-expected fiscal third-quarter earnings, driven by a successful turnaround in the United States. The company's adjusted EPS came to $0.85 per share, surpassing analyst estimates and rising 70% year-over-year. Revenue reached $9.3 billion, slightly above expectations but down from last year. Strong US sales growth contributed significantly, with comparable store traffic up 4.2%. Starbucks raised its full-year guidance for adjusted EPS to between $2.55 and $2.65 per share. The company's global comparable sales increased by 7.9%, though international revenue fell due to the restructuring of operations in China into a joint venture with Boyu Capital, which does not reflect declining demand. Starbucks retains a 40% stake in this partnership. The firm also announced plans for new store openings and improved operating margins. Analysts noted that part of the US sales growth was attributed to closures of underperforming stores last year, while other factors included faster service initiatives and marketing efforts.
Tickers: $SBUX
Topics: full-year guidance raise Q3 earnings beat Starbucks US sales growth