What was the primary driver of the net loss in this quarter?

The net loss of $6.7 million was primarily influenced by a combination of decreased revenue due to declining U.S. comparable store sales, strategic investments in the business, and the ongoing challenging economic climate impacting consumer spending.

How did international markets perform compared to the U.S. market?

International markets demonstrated relative strength, with comparable store sales increasing by 2%. This contrasts with a 7% decrease in U.S. comparable store sales, indicating that Starbucks' international operations were more resilient to the economic downturn during this period.

What steps is Starbucks taking to address the challenging economic environment?

Starbucks is actively pursuing store portfolio optimization, including store closures, to streamline operations and reduce costs. Additionally, the company is focusing on enhancing operational efficiencies and managing expenses effectively to navigate the impact of reduced consumer spending and maintain financial health.

How has foreign currency exchange impacted the company's results?

Unfavorable foreign currency translation contributed to the reported decline in consolidated revenue. While international sales showed growth in local currency, the strengthening of the U.S. dollar against certain foreign currencies negatively impacted the reported revenue figures when converted back to U.S. dollars.

SBUX 10-Q Quarterly Report Q3 FY2009 — Revenue, Net Income, EPS

Summary

Starbucks Corporation (SBUX) reported its results for the third quarter of fiscal year 2009, ending June 27, 2009. The company faced a challenging economic environment, marked by declining consumer spending and increased competition. Despite these headwinds, Starbucks demonstrated resilience, particularly in its international markets, while focusing on cost management and strategic initiatives to navigate the downturn. Investors should note the company's efforts to optimize its store portfolio and enhance operational efficiency as key themes during this period.

Financial Highlights

54 data points

Beta

Revenue

$2.40B

0.6% Gross Margin

Net Income

$151.50M

0.1% Net Margin

EPS (Diluted)

$0.10

Total Assets

$5.33B

Cash & Equivalents

$292.00M

Free Cash Flow

$194.00M

Financial Statements

Beta

Revenue	$2.40B
Cost of Revenue	$1.04B
Gross Profit	$1.36B
Operating Expenses	$2.23B
Operating Income	$204.00M
Interest Expense	$8.60M
Net Income	$151.50M
EPS (Basic)	$0.10
EPS (Diluted)	$0.10
Shares Outstanding (Basic)	1.48B
Shares Outstanding (Diluted)	1.49B

Key Highlights

1The company experienced a net loss of $6.7 million for the quarter, a significant shift from the prior year's profit, reflecting the ongoing economic pressures and strategic investments.
2Consolidated revenue for the quarter decreased by 7% to $2.5 billion, driven by a decline in U.S. comparable store sales and unfavorable foreign currency translation.
3U.S. comparable store sales decreased by 7%, highlighting the impact of reduced consumer discretionary spending.
4International comparable store sales showed resilience, increasing by 2%, indicating strength in key overseas markets.
5The company continued its store optimization efforts, closing a net of 85 stores during the quarter, contributing to ongoing cost rationalization.
6Effective cost management and operational efficiencies were key focus areas, aimed at mitigating the impact of lower revenues and maintaining profitability margins where possible.

STARBUCKS CORP Quarterly Report for Q3 Ended Jun 28, 2009

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions