Starbucks: EPS down 23% in Q1

(CercleFinance.com) - On Tuesday evening, Starbucks reported EPS that was down 23% at $0.
69 for Q1 2024-25, with an operating margin contracting by 3.9 points to 11.9% on flat revenues of $9.4bn.

The coffee chain explains this deterioration in profitability mainly by its investments made as part of its 'Back to Starbucks' strategy, including compensation increases for its employees.

The group saw its worldwide same-store sales fall by 4% (both in North America and internationally), with a 6% decline in the number of transactions partially offset by a 3% rise in the average receipt.

We are encouraged by our results, which have demonstrated the effectiveness of our 'Back to Starbucks' strategy, as reflected in our sales trend, management said.


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