Revenue
Earnings
The consensus estimate for Q1 2024 EPS is $0.93, which compares to adjusted EPS of $0.75 in Q1 2023. In Q4 2023, adjusted EPS grew 31% to $1.06.
Points to note
Starbucks continues to see strong demand globally with both its core offerings and new offerings performing well. The company has been benefiting from growth in transactions and ticket, which in turn have driven growth in revenue and comps. These trends are likely to have continued in the first quarter as well.
The coffee giant continues to see momentum in the US, its largest market, where it is benefiting from menu innovation and strategic pricing. The company’s efforts in customization and its investments in supply chain and technology are paying off.
Starbucks has been seeing improvement in China, its second largest market, after facing several headwinds over the past year. The momentum across its omni-channel experiences such as mobile order delivery and ecommerce, new store growth, and the opening of the China Coffee Innovation Park are all indicators of the vast growth opportunity the company has in this region. These factors bode well for the first quarter.