This $US96bn Seattle coffee giant missed its earnings estimate this morning. Earnings were down 40% from a year ago, even while revenue advanced 3%, much of which was driven by new store openings. The stock has already dropped close to 30% from its February high, with this result likely to add momentum to the slide until the market sees evidence of stabilised earnings.
- Revenue of $US8.8bn was in line with expectations.
- Same-store sales fell 1% compared to the same quarter in 2024.
- EPS of 41c was well below the 49c estimated by analysts.
The worst may already be behind Starbucks, but it feels too early to back management’s turnaround plans.
MM is neutral towards Starbucks
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