Starbucks Aims for a Comeback: Q1 FY2025 Earnings Report
Key Highlights:
* Revenue: $9.32 billion (estimated) vs. $9.43 billion (Q1 FY2024)
* Adjusted EPS: $0.66 (estimated) vs. $0.75 (Q1 FY2024)
* Same-Store Sales: -5.30% (estimated) vs. +5.00% (Q1 FY2024)
* Foot Traffic: -7.28% (estimated) vs. +2.0% (Q1 FY2024)
* Ticket Growth: 1.87% (estimated) vs. 3.00% (Q1 FY2024)
Key Indicators:
* US Performance: Analysts view it as a crucial indicator for the overall business.
* Ticket Growth: Lower growth may offset a slight improvement in foot traffic.
* Operating Expenses: General and administrative expenses are being closely monitored.
"Back to Starbucks" Plan:
* Focus on quality coffee, improved pricing, and faster service.
* Elimination of non-dairy milk surcharges in North America.
* Reintroduction of ceramic mugs.
* Implementation of a Coffeehouse code of conduct.
* Corporate layoffs for increased efficiency.
Analysts' Perspectives:
* Bank of America: Starbucks faces an opportunity for brand improvement but investors may be hesitant due to slow sales growth.
* Citi: Negative same-store sales trends are expected to continue.
* Sara Senatore, Bank of America: US performance will be a key metric to assess.
* Jon Tower, Citi: Starbucks stock has underperformed the S&P 500 but has gained since Brian Niccol took over as CEO.