Transaction growth - Global comparable store sales rose 7.9%, driven by a 4.2% increase in transactions and a 3.5% increase in average ticket
North America sales mix - North America revenue rose 7%, helped by higher delivery sales and increased customer food attach and beverage modifications
China joint venture impact - International revenue fell 34% due to conversion of Starbucks China retail operations to a licensed joint venture model
Margin expansion - Operating margin expanded due to sales leverage, lower inflation, and tariff refunds, partially offset by higher restructuring costs and labor investments
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$9.30 bln
$9.16 bln (23 Analysts)
Q3 Adjusted EPS
Beat
$0.85
$0.66 (24 Analysts)
Q3 EPS
$0.91
Q3 Adjusted Operating Margin
14.40%
Q3 Global Comparable Store Sales Growth
7.90%
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 17 "strong buy" or "buy", 18 "hold" and 5 "sell" or "strong sell"
The average consensus recommendation for the restaurants & bars peer group is "buy."
Wall Street's median 12-month price target for Starbucks Corp is $110.00, about 6.7% above its July 28 closing price of $103.10
SBUX•
