How does Starbucks' Q3 2024 performance compare to previous quarters?

Starbucks' Q3 2024 performance shows a slight decline compared to the previous quarter, Q2 2024, but notable improvements over the fiscal year's earlier quarters. 1. **Revenue Comparison**: - Q3 2024’s total revenue is $9.4 billion, which is consistent with the previous quarter’s revenue. This indicates stability in revenue generation. - However, when compared to Q2 2024, there is a slight decline, as Q2’s revenue was $9.4 billion, the same as Q3. - Looking at the prior quarter, Q1 2024, revenue was also $9.4 billion, showing that Q3’s revenue is in line with the immediate past but slightly down from Q2’s revenue. - Compared to Q4 2023, there is a slight increase, as Q4’s revenue was $9.4 billion, the same as Q3 2024. |code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code| |---|---|---|---|---|---|---| |SBUX|SBUX.O|Starbucks|2023 Q4|11.402153502412588|9.3736E9|185| |SBUX|SBUX.O|Starbucks|2024 Q1|8.16396791333387|9.4253E9|185| |SBUX|SBUX.O|Starbucks|2024 Q2|-1.7982063808802955|8.563E9|185| |SBUX|SBUX.O|Starbucks|2024 Q3|-0.5933488214827176|9.1139E9|185| |code|Ticker|Name|Date|Net Income YoY|Net Income|market_code| |---|---|---|---|---|---|---| |SBUX|SBUX.O|Starbucks|2023 Q4|38.793397837222535|1.2193E9|185| |SBUX|SBUX.O|Starbucks|2024 Q1|19.78484565014032|1.0244E9|185| |SBUX|SBUX.O|Starbucks|2024 Q2|-14.951007376417483|7.725E8|185| |SBUX|SBUX.O|Starbucks|2024 Q3|-7.548822138541028|1.0557E9|185| |code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code| |---|---|---|---|---|---|---| |SBUX|SBUX.O|Starbucks|2023 Q2|14.199277070564198|8.7198E9|185| |SBUX|SBUX.O|Starbucks|2023 Q3|12.493098244193321|9.1683E9|185| |SBUX|SBUX.O|Starbucks|2023 Q4|11.402153502412588|9.3736E9|185| |SBUX|SBUX.O|Starbucks|2024 Q1|8.16396791333387|9.4253E9|185| |code|Ticker|Name|Date|Net Income YoY|Net Income|market_code| |---|---|---|---|---|---|---| |SBUX|SBUX.O|Starbucks|2023 Q2|34.56296296296296|9.083E8|185| |SBUX|SBUX.O|Starbucks|2023 Q3|24.975374849512967|1.1419E9|185| |SBUX|SBUX.O|Starbucks|2023 Q4|38.793397837222535|1.2193E9|185| |SBUX|SBUX.O|Starbucks|2024 Q1|19.78484565014032|1.0244E9|185| |code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code| |---|---|---|---|---|---|---| |SBUX|SBUX.O|Starbucks|2023 Q1|8.24182649309351|8.7139E9|185| |SBUX|SBUX.O|Starbucks|2023 Q2|14.199277070564198|8.7198E9|185| |SBUX|SBUX.O|Starbucks|2023 Q3|12.493098244193321|9.1683E9|185| |SBUX|SBUX.O|Starbucks|2023 Q4|11.402153502412588|9.3736E9|185| |code|Ticker|Name|Date|Net Income YoY|Net Income|market_code| |---|---|---|---|---|---|---| |SBUX|SBUX.O|Starbucks|2023 Q1|4.791079524568068|8.552E8|185| |SBUX|SBUX.O|Starbucks|2023 Q2|34.56296296296296|9.083E8|185| |SBUX|SBUX.O|Starbucks|2023 Q3|24.975374849512967|1.1419E9|185| |SBUX|SBUX.O|Starbucks|2023 Q4|38.793397837222535|1.2193E9|185| 2. **Net Income Comparison**: - Q3 2024’s net income is $1.06 billion, which is higher than Q2 2024’s net income of $772.5 million. - It is also higher than Q1 2024’s net income of $1.02 billion, indicating an improvement from the previous quarter. - However, it is lower than Q4 2023’s net income of $1.22 billion, suggesting a decline from the previous quarter. 3. **Growth Rate and Challenges**: - Starbucks faced a challenging consumer environment, especially in China, where cautious consumer spending and intensified competition impacted results. - Global comparable store sales declined by 3% year-over-year, with a 2% decline in North America and a 14% decline in China. - Operating margins contracted by 70 basis points to 16.7%, primarily due to increased promotional activity and investments in store partner wages and benefits. 4. **Strategic Initiatives**: - Despite the challenges, Starbucks saw strong performance in Japan, with double-digit growth driven by innovation and strong execution. - The company’s active U.S. Starbucks Rewards Membership totaled 33.8 million, up 7% over the prior year and 3% over Q2. - Operational improvements, such as the introduction of the Siren System, have led to significant efficiency gains and reduced partner turnover. In conclusion, Starbucks' Q3 2024 performance shows resilience amid challenging consumer conditions, with improvements in net income and revenue compared to Q2 2024, but slight declines compared to Q4 2023, reflecting a company that continues to navigate and adapt to market challenges while focusing on strategic growth areas.