ALBAWBA – Starbucks, the American coffee franchise, has released their Q1 fiscal 2024 financial statement, reporting an 8 percent revenue increase of $9.4 billion year on year, 2.2 percent lower compared to analysts’ expectations of $9.6 billion as reported by Yahoo Finance, as well as 2.5 percent lower than estimated adjusted earning per stock share increase of 20 percent, hitting $0.90 per share, a contrast of $0.93 anticipated.
Laxman Narasimhan, CEO of the franchise, commented on the report claiming that Starbucks’ brand is standing firm despite challenges, possibly hinting at recent controversies surrounding the company, attributing what he calls ‘strong performance on many measures’ to loyal clients in their rewards membership, which reported higher spending per user.
Aside from fierce competition against growing brands, Starbucks has been the subject of boycott calls by many after it sued its workers union over a social media post that expressed support to Palestinians in the ongoing Israeli war on Gaza, as well as reports of the company’s biggest private shareholder Howard Schultz stance on supporting the Zionism regime, with Starbucks saying in its financial statement that such boycotts and publicly negative campaigns could harm the company’s brand value.
Keep BOYCOTTING child killers!🩸🩸#BoycottStarbucks #BoycottMcDonalds pic.twitter.com/UUuMTMKXLv
— Dr. Anastasia Maria Loupis (@DrLoupis) January 31, 2024
Despite an overall 7 percent increase in global sales, the financial report shows lower than anticipated sales across US and China stores, with 5 and 10 percent growth in sales for both regions respectively, which were expected to be 5.73 percent up in the US and about 16 percent higher in China according to Wall Street analysts, making the coffee giant’s plans for 9,000 stores in China by 2025 a hard goal.
Starbucks projected its 2024 revenue growth to be in between 7 and 10 percent, lower than previous estimates of 10 and 12 percent, with global and US sales across its reported 38,587 stores expected to jump 4 and 6 percent compared to the previous 5 and 7 percent.
