New stores (like the Crossville location) are part of the expansion plan announced by the company in November
Construction at the new Crossville Starbucks location on Genesis Road, across the street from Buc-ees, is nearing completion.
The location is the first stand-alone Starbucks store in Cumberland County. There are three locations inside grocery stores in the area. Project completion comes on the heels of Starbucks reporting financial results for the 13-week second quarter.
The report showed the brand struggled with store sales declining and a 6% decline in comparable transactions.
“In a highly challenged environment, this quarter’s results do not reflect the power of our brand, our capabilities or the opportunities ahead,” said Laxman Narasimhan, Chief Executive Officer. “It did not meet our expectations, but we understand the specific challenges and opportunities immediately in front of us.”
New building – Construction on Crossville’s only stand alone Starbucks location is winding down.
New stores (like the Crossville location) are part of the expansion plan announced by the company in November. The coffee giant stated it was “making several leadership changes” while “creating a clear geographic leadership structure.”
Those changes went into effect April 1.
According to the release, Starbucks intends to grow 55,000 stores globally as part of a strategic plan for footprint expansion in the U.S.
“As we look to the future, the opportunity we have is truly limitless,” said Narasimhan in a release by the company. “Throughout our history, we have continued to reinvent not who we are or what we stand for, but what we do and how we connect with our customers and deliver our long-term aspirations. Because of our partners and with our strategic plan and world class-leadership team, the best days of Starbucks are ahead of us.”
No official opening date has been announced. Check back for updates.
Highlights of Starbucks Q2 Fiscal 2024 report include:
- Global comparable store sales declined 4%, driven by a 6% decline in comparable transactions, partially offset by a 2% increase in average ticket
- North America and U.S. comparable store sales declined 3%, driven by a 7% decline in comparable transactions, partially offset by a 4% increase in average ticket
- International comparable store sales declined 6%, driven by a 3% decline in both comparable transactions and average ticket; China comparable store sales declined 11%, driven by an 8% decline in average ticket and a 4% decline in comparable transactions
- The company opened 364 net new stores in Q2, ending the period with 38,951 stores: 52% company-operated and 48% licensed
- At the end of Q2, stores in the U.S. and China comprised 61% of the company’s global portfolio, with 16,600 and 7,093 stores in the U.S. and China, respectively
- Consolidated net revenues declined 2%, to $8.6 billion or a 1% decline on a constant currency basis
- GAAP operating margin contracted 240 basis points year-over-year to 12.8%, primarily driven by deleverage, incremental investments in store partner wages and benefits, increased promotional activities, lapping the gain on the sale of Seattle’s Best Coffee brand, as well as higher general and administrative costs primarily in support of Reinvention. This decline was partially offset by pricing and in-store operational efficiencies.
- Non-GAAP operating margin contracted 150 basis points year-over-year to 12.8% or contracted 140 basis points on a constant currency basis
- GAAP earnings per share of $0.68 declined 14% over the prior year
- Non-GAAP earnings per share of $0.68 declined 8% over the prior year or declined 7% on a constant currency basis
- Starbucks Rewards loyalty program 90-day active members in the U.S. totaled 32.8 million, up 6% year-over-year
UCBJ photo.
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