Starbucks disappointed investors with lower-than-expected earnings and revenue in the latest quarter, attributing the decline to a drop in same-store sales.
The company also revised its fiscal 2024 earnings and revenue outlook downward, citing expectations of continued underperformance in its cafes for the foreseeable future.
Following the announcement, Starbucks’ stock plummeted by 12% in after-hours trading.
CEO Laxman Narasimhan acknowledged the challenges faced by the company, stating, “Despite the tough environment, our brand, capabilities, and growth prospects remain strong. While this quarter fell short of our projections, we are aware of the immediate obstacles and opportunities that lie ahead.”
Notably, same-store sales declined by 4%, with a 6% drop in cafe traffic, significantly below the 1% growth anticipated by analysts.
Starbucks reported declining same-store sales and reduced foot traffic across all regions, with a 3% decrease in the U.S. and a 7% decline in cafe visits.
2024-05-01 09:21:41
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