Starbucks Reports Q2 Fiscal 2024 Results: 3% U.S. Sales Decline, 6% International Drop, Lowered Full-Year Forecast

Seattle, Washington, USA United States of America
CEO Laxman Narasimhan described the quarter's performance as not reflecting the power of the brand or opportunities ahead.
Executives attributed underperformance to poor weather, fewer customer visits, and competition offering less expensive beverages.
Same-store sales declined by 3% in North America and 6% internationally, with China experiencing an 11% decline and an average ticket drop of eight percent.
Starbucks plans to improve supply chain issues and use its app for personalized promotions. The company lowered its revenue and earnings growth forecast for the full year to the low single digits.
Starbucks reported Q2 Fiscal 2024 results with a 3% decline in U.S. sales and a 6% decrease in international sales.
Starbucks Reports Q2 Fiscal 2024 Results: 3% U.S. Sales Decline, 6% International Drop, Lowered Full-Year Forecast

Starbucks, the global coffeehouse chain, reported its financial results for the second quarter of fiscal 2024 on April 30, 2024. The company's performance did not meet expectations as indicated by CEO Laxman Narasimhan in his statement (Starbucks Corporation [1], Starbucks [2]). GAAP measures in fiscal 2024 and fiscal 2023 differed, with details available on the Investor Relations site. The quarter's results were described as not reflecting the power of the brand or opportunities ahead (Starbucks Corporation [1]).

According to reports from various sources, Starbucks faced challenges in both its U.S. and international markets (Starbucks [2], NYTimes [3]). In North America, same-store sales declined by 3%, while international markets reported a 6% decrease in same-store sales (Starbucks [2]). China was particularly affected, with an 11% decline in same-store sales and an average ticket drop of eight percent (Starbucks [2]).

Executives attributed the underperformance to various factors such as poor weather, fewer customer visits to stores, and competition offering less expensive beverages (NYTimes [3]). To counteract these challenges, Starbucks plans to improve supply chain issues and use its app for personalized promotions (NYTimes [3]).

Starbucks also lowered its revenue and earnings growth forecast for the full year to the low single digits, down from a previous estimate of 7% to 10% (Starbucks [2]). The company's net income attributable to the company and earnings per share were $772.4 million and $0.63, respectively (Starbucks [1]).

The decline in Starbucks' performance was met with a 12% drop in its shares after hours (CNBC [4]).


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Confidence

91%

Doubts
  • It is unclear if the competition offering less expensive beverages refers to a specific competitor or competitors.
  • The article mentions GAAP measures differing between fiscal years but does not provide further details.

Sources

80%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Starbucks shares sink 12% as coffee chain slashes 2024 forecast amid same-store sales drag

CNBC News Amelia Lucas Tuesday, 30 April 2024 19:30
  • Unique Points
    • Starbucks forecasts revenue growth in the low single digits for fiscal 2024, down from its previous forecast of 7% to 10%
    • International same-store sales declined by 6%, with China reporting an eleven percent decrease in same-store sales and an eight percent drop in average ticket
  • Accuracy
    • Starbucks reported weaker-than-expected quarterly earnings and revenue in Q2 2023
    • Same-store sales declined by 4% due to a decrease in traffic of 6%
    • Global and US same-store sales growth is projected to be flat to low single digits instead of the previous forecast of 4% to 6%
    • Same-store sales in China are expected to decline by single digits instead of a single-digit increase
  • Deception (30%)
    The article contains selective reporting as it only reports the negative financial performance of Starbucks without mentioning any positive aspects or context. The author also uses emotional manipulation by stating that 'Starbucks on Tuesday reported weaker-than-expected quarterly earnings and revenue, fueled by a surprise decline in same-store sales.' This statement is not neutral and creates a negative impression of the company's performance.
    • Shares of the company fell 12% in extended trading.
    • The coffee chain also slashed its forecast for its fiscal 2024 earnings and revenue, predicting that its cafes would keep underperforming for several quarters.
  • Fallacies (85%)
    The author makes an appeal to authority when quoting CEO Laxman Narasimhan's statements. However, this is not a fallacy as the author is reporting on the statements made by the CEO and not endorsing them as her own.
    • ][CEO Laxman Narasimhan] In a highly challenged environment, this quarter’s results do not reflect the power of our brand, our capabilities or the opportunities ahead. It did not meet our expectations, but we understand the specific challenges and opportunities immediately in front of us.[/
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

81%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Same-Store Sales at Starbucks Drop, Pushing Revenue Down 1.8%

The Name Of The NZ Prefix. I PWA NZI.P.Was Dropped. Julie Creswell Tuesday, 30 April 2024 23:24
  • Unique Points
    • Starbucks saw some customers being more careful about spending in the US.
  • Accuracy
    • Global revenue fell 1.8% to $8.56 billion and net earnings slid 15% to $772.4 million.
    • Same-store sales decreased by 3% in North America and 6% in international markets.
    • Executives attributed the declines to poor weather, fewer customer visits, and economic recovery being ‘choppier’ than expected in China.
    • Supply chain issues were identified as a potential solution to improve traffic and sales by ensuring availability of hot food and beverages.
  • Deception (30%)
    The article reports on Starbucks' latest financial results, which show a decline in revenue and earnings. While the information itself is not deceptive, the author does not disclose any sources for the quotes or data used in the article. This violates rule 3: 'LOOK FOR EDITORIALIZING, PONTIFICATION AND AUTHOR OPINIONS'. The author also implies that Starbucks' decline in sales is due to poor weather and fewer customer visits to its stores, without providing any peer-reviewed studies or credible sources to support this claim. This violates rule 4: 'SCIENCE AND HEALTH ARTICLES THAT IMPLY OR CLAIMS FACTS WITHOUT LINKING TO PEER-REVIEWED STUDIES WHICH HAVE NOT BEEN RETRACTED'. Additionally, the author states that Starbucks' growth seemed unstoppable during the pandemic due to its Gen Z customers, which could be seen as an opinion rather than a fact. This violates rule 1: 'THE AUTHOR IS: Julie Creswell', as we are only considering statements made by the author and not quotes or opinions of others.
    • Executives said the economic recovery in China had been ‘choppier’ than they expected.
    • Starbucks missed its quarterly earnings’ estimates as consumers slowed spending on iced coffee and other beverages.
    • The chain’s quarterly earnings missed Wall Street’s estimates, its shares fell more than 12 percent in after-hours trading.
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

88%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Starbucks Reports Q2 Fiscal 2024 Results

Starbucks Stories Wednesday, 01 May 2024 08:36
  • Unique Points
    • Starbucks reported financial results for its fiscal second quarter ended March 31, 2024
    • CEO Laxman Narasimhan commented on the quarter’s results not reflecting the power of the brand or opportunities ahead
    • Starbucks has a clear plan to execute and is confident in its long-term strategy called Triple Shot Reinvention with Two Pumps
  • Accuracy
    • The company remains committed to its disciplined approach to capital allocation
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (0%)
    None Found At Time Of Publication