Overview
- Starbucks reported fiscal third-quarter results on July 29 showing global same-store sales rose 7.9% and adjusted earnings per share of $0.85, both well above analysts' expectations.
- Consolidated revenue fell about 1% to $9.3 billion in the quarter largely because Starbucks sold a majority stake in its China business earlier in the year.
- Management raised full-year adjusted EPS guidance to a range of $2.55 to $2.65 and lifted its same-store sales outlook for the fiscal year.
- Executives said the company will complete at least 500 additional store remodels before year end and will continue to assess its North America store portfolio, which could lead to more closures.
- Shares jumped in after-hours and premarket trading and multiple brokerages raised price targets, but investors and analysts say free cash flow, the paused buyback program, and dividend coverage remain key execution risks.