For its second quarter earnings, the company missed expectations across the board, posting lower-than-expected revenue, earnings, and same-store sales growth, as customers pulled back on the frequency of their visits and the size of their orders.CEO Laxman Narasimhan called it a "a highly challenged environment."
Global same-store sales declined 4% from a year ago as transactions dropped 6%, which was partially offset by a 2% increase in average ticket size. Narasimhan also called out the speed of service as an area of opportunity. Currently, many customers don't complete their app orders due to long wait times or lack of product availability. The company is "ramping up supply chain investments to further improve availability," he said.New products, such as boba tea-like pearls, zero to low-calorie energy drinks, and more sugar-free syrups, are also on tap.
As of Q2, Starbucks expects 2024 global revenue growth of low-single digits, down from the previous range of 7% to 10%, which itself was down from a prior guidance of 10% to 12%. Consolidated Edison's Q1 results are likely to reflect the benefits of favorable rate hikes amid the adverse impact of warmer-than-normal weather patterns.