Starbucks’ In-Line Earnings Ease Fears of a Bigger Slump

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Starbucks News

Bloomberg,Laxman Narasimhan

(Bloomberg) -- Starbucks Corp. delivered results that were in line with expectations, assuaging investors who had been bracing for another meltdown after...

-- Starbucks Corp. delivered results that were in line with expectations, assuaging investors who had been bracing for another meltdown after being blindsided by the previous quarter’s slump.Kamala Harris Wipes Out Trump’s Swing-State Lead in Election Dead HeatSales at coffee shops open at least a year fell 3% in the company’s fiscal third quarter, the second straight drop. While the number of transactions fell, US diners are spending more each visit, helping to prop up revenue.

Starbucks’ business has taken a hit as consumers pressured by inflation and dwindling savings tighten their spending. In the US, its largest market by number of stores, the company has sought to lure customers in with discounts and new products. It’s also looking to speed up service, while facing renewed pressure from an activist investor.

Chief Financial Officer Rachel Ruggeri said the chain’s efficiency efforts are “are tracking ahead of expectations” and partially offset investments the company made to cope with the cautious consumer environment, which include stepped-up marketing and promotions. Narasimhan said that the company’s efforts to boost demand and speed up service “will position us stronger” for growth in Starbucks’ next fiscal year.

Earnings per share, excluding some items, were 93 cents in the quarter ended June 30, slightly above the average estimate. Operating margin declined from the prior year, mostly due to an increase in promotions and improved wages and benefits for store workers, among other factors.Simone Biles and Suni Lee left it all on the floor for their gold medal win at the Olympics. Then, they had to decide what to post on social media.

 

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