CLAIM #53156 · Starbucks Corporation (SBUX) · 2024Q3 earnings call · Jul 30, 2024

“Our significant efficiency runway, coupled with sales growth gives us confidence to drive margin expansion over time.”

Rachel Ruggeri · CFO

How to check this claim

Look at: Operating margin (company-reported, consolidated)

It came true if: Operating margin for the period ending closest to 2026-07-30 higher than the operating margin reported for the quarter in which this statement was made (Q3 FY2024)

Where: Quarterly income statement / earnings release (10-Q or 10-K)

Knowable after: 2026-07-30

In context

“ximately 100 basis points between rebates and rate savings. In addition, we believe our end-to-end supply-chain focus gives us the opportunity to increase inventory availability with the right products at the right time, enhancing the customer experience while reducing waste. As we've shared, G&A was elevated at more than 7% of revenue through Q2, as we have deliberately invested in resources to continue to grow our technology capability. We have, however, reduced G&A in Q3 and expect it to remain closer to 6% of revenue in the second half of this fiscal year as we balance investments for our long-term growth. When considering our progress this fiscal year, our in-store and out-of-store year-to-date efficiency efforts collectively amounted to nearly 300 basis points of margin improvement. Our significant efficiency runway, coupled with sales growth gives us confidence to drive margin expansion over time. Given this, we have ample opportunities to deliver above our initial goal of $3 billion, driving to $4 billion in efficiencies over the next four years. Q3 EPS was $0.93, down 6% from the prior year. The decline was driven largely by the cautious consumer environment, which in response drove increased promotions and marketing in the quarter, partially offset by our efficiency efforts. Additionally, our higher effective tax rate had a $0.03 unfavorable impact driven by fewer discrete items relative to the prior year. With segment results being discussed in detail in today's Q3 earnings release, I'll now touch on our capital allocation and financial resilience and then move into guidance. As a reminder, our disciplined approach to capital allocation continues to drive financial flexibility,”

Verify independently

SEC filings for SBUX ↗ · Quote is verbatim from the 2024Q3 earnings call.