06:54 AM EDT, 07/31/2024 (MT Newswires) -- Starbucks ( SBUX ) maintained its full-year outlook even after the coffee chain's fiscal third-quarter fiscal third-quarter results declined with sales missing Wall Street's expectations.

The company continues to anticipate per-share adjusted earnings growth in a range of flat to a low single-digit percentage in fiscal 2024, it said late Tuesday. Global revenue is still expected to rise by a low-single digit, while global comparable store sales are projected to be flat to down by low-single digits. The stock was up 1.9% in Wednesday's premarket activity.

"We're pleased to reaffirm all metrics of our full year 2024 guidance," Chief Financial Officer Rachel Ruggeri said during an earnings call, according to a Capital IQ transcript. "Our confidence is underpinned by the result of our action plans, coupled with the continued efficiency unlock both in and out of store."

For the quarter ended June 30, adjusted EPS declined 7% to $0.93, in line with the consensus compiled by Capital IQ. Revenue slipped to $9.11 billion from $9.17 billion last year, trailing the Street's view for $9.25 billion. Global comparable store sales dropped 3% versus a 2.8% decrease modeled by the market. The result was driven by a 5% fall in transactions, partially offset by a 2% increase in average ticket.

"We're seeing progress against our three-part action plans," Ruggeri said on the call. "Our efficiency efforts, which are tracking ahead of expectations, partially offset investments associated with the cautious consumer environment."

US same-store sales fell 2%, but pricing and multi-beverage orders drove the average ticket up 4%, according to Ruggeri. International comparable sales declined 7% amid persistent headwinds in the Middle East, Southeast Asia and parts of Europe. China same-store sales tumbled 14%, as the company continued to face "more cautious consumer spending and intensified competition," Chief Executive Laxman Narasimhan said on the call.

Shares in the company were up 2.7% in pre-market trading Wednesday. Wedbush Securities raised its price target on the stock to $80 from $77 and maintained its neutral rating. "We believe SBUX's current valuation appropriately reflects increasingly limited (near-term) top- and bottom-line visibility, offset by some level of confidence in management's ability to deliver longer-term annual operating margin expansion and EPS growth in line with the brand's equity," analysts including Nick Setyan said in a note.

Operating margin contracted by 60 basis points to 16.7% as promotions increased and investments were made in store partner wages, among other factors. Total operating expenses inched 0.2% higher to $7.67 billion. The coffee chain opened 526 new stores in the quarter.

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