From CNBC: 2024-04-30 21:38:55

Starbucks shares dropped 11.5% after a weak quarter, revenue fell 2% to $8.56 billion, with adjusted earnings per share of 68 cents missing estimates. North American comparable store sales fell 3%, with transactions down 7%. The company cut fiscal 2024 guidance, including low single-digit global revenue growth and flat adjusted EPS growth. China sales declined due to competition. Operating margins are expected to be flat.

CEO Laxman Narasimhan highlighted plans to improve operations and drive growth in the U.S., focusing on meeting demand, launching new products, and attracting occasional customers. Despite ongoing challenges, Starbucks remains confident in its ability to rebound by implementing new tools and processes, introducing value-focused initiatives, and driving up capacity to enhance the customer experience.



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