Starbucks Corp (SBUX) reported fiscal second-quarter financial results Tuesday after the bell, missing analyst estimates for both revenue and earnings. Revenue declined 2% year-over-year to $8.6 billion, while earnings per share came in at 68 cents, below estimates of 79 cents per share. Comparable store sales fell 4% globally, driven by a 6% decline in comparable transactions, partially offset by a 2% increase in average ticket. Comps fell 3% in North America, 11% in China, and 6% internationally during the quarter. Active U.S. rewards memberships reached 32.8 million in the first quarter, up 6% on a year-over-year basis.
The company opened 364 net new stores in the second quarter and ended the period with 38,951 total locations.
“In a highly challenged environment, this quarter’s results do not reflect the power of our brand, our capabilities, or the opportunities ahead,” said Laxman Narasimhan, CEO of Starbucks. “It did not meet our expectations, but we understand the specific challenges and opportunities immediately in front of us. We have a clear plan to execute, and the entire organization is mobilized around it.”
Starbucks’ board declared a cash dividend of 57 cents per share, payable on May 31 to shareholders of record as of May 17. Starbucks will discuss fiscal-year 2024 financial targets during its earnings call, which is set to kick off at 5 p.m. ET.
In after-hours trading, Starbucks shares were down 9.92% to $88.49 at the time of publication, according to Benzinga Pro.
