Summary by Futu AI
Starbucks reported a robust first quarter for fiscal 2024, with consolidated net revenues rising 8% to $9.4 billion compared to $8.7 billion in the same quarter of the previous year. This increase was largely attributed to growth in the North America business and the International segment, with global comparable store sales growing by 5%. The U.S. market saw a 5% growth, while international sales grew by 7%. The company's operating margin improved by 140 basis points to 15.8%, driven by sales leverage and operational efficiencies, despite increased investments in wages and benefits for store partners and higher administrative expenses. Starbucks opened 1,475 new company-operated stores, marking an 8% increase over the past 12 months. The company also highlighted the success of its Triple Shot Reinvention with Two Pumps Plan, which is expected to continue driving balanced earnings growth. Looking ahead, Starbucks anticipates transitory headwinds experienced in the first quarter may persist throughout the fiscal year but remains confident in its long-term growth and business model.
