Starbucks, the world’s leading roaster, marketer, and retailer of specialty coffee, is expected to report its Q2 2024 results on April 30. Analysts anticipate that the company’s revenue and earnings will slightly exceed expectations, with full-year revenue growth forecasted to be between 7% to 10% year-over-year. Global and U.S. comparable sales growth is expected to be up 4% to 6% for the year. The company has maintained its guidance for EPS growth and store growth, with a consensus estimate for full-year EPS of $4.10. Starbucks has a history of increasing its dividend and is likely to continue this trend, supported by growing earnings and strong performance.
According to Trefis estimates, Starbucks Q2 2024 revenues are projected to be around $9.2 billion, slightly above the consensus estimate. In Q1, the company reported a 7.9% increase in total revenue to $9.4 billion, with North America comparable sales up by 5% driven by higher average tickets and transactions. International comparable sales also saw a 7% increase, with China’s comparable store sales up by 10%. The company’s operating margin improved by 130 basis points to 15.8% of sales, with a growing base of rewards members in the U.S. Starbucks opened 549 net new stores in Q1, ending the quarter with a record global store count of 38,587 stores.
Starbucks aims to have 55,000 locations globally by 2030, with a focus on expansion in China. The company’s long-term growth prospects and ability to continue expanding despite its already widespread presence are crucial considerations for investors. Trefis forecasts Starbucks’ Q2 2024 earnings per share to be 82 cents, slightly above consensus estimates. In Q1, the company reported earnings per share of $0.90, indicating a strong performance compared to the previous year. Based on Trefis’ valuation, Starbucks stock is estimated to be worth $101 per share, representing a 15% increase over the current market price.
Comparing Starbucks’ stock to its peers, Trefis’ analysis provides insights into how the company stacks up against competitors on key metrics. By examining metrics such as EPS estimates and P/E multiples, investors can gain a better understanding of Starbucks’ valuation and potential for growth. With a P/E multiple of 24.8x for fiscal 2024, Starbucks is projected to deliver strong performance and continue its upward momentum in the market. Investors seeking market-beating portfolios can benefit from Trefis’ comprehensive analysis and price estimates for Starbucks and other companies in various industries.