Starbucks gives investors jolt with Q3 2009 earnings

After the bell today, Starbucks surprised with non-GAAP earnings came in at 24 cents a share after one-time charges associated with store closings, or $151.5 million. Analysts' consensus had been earnings of 19 cents a share. These results are compared to 16 cents a share in Q3 2008. Starbucks registered revenue of $2.4 billion, compared to $2.6 billion in Q3 2008 and $2.3 billion in Q2 of this year. Comparable store sales were down 5% between Q3 2008 and 2009, which Starbucks says was an improvement over Q2 2009, with a nine percent same-store sales decline.

I wrote at length on DailyFinance about Starbucks' third quarter 2009 events and hopes for the future. While analysts seem to be focused on same-store sales and when they'll turn positive (management won't say), my judgment is that it's far more important that Starbucks find a way to connect with consumers' changing desires. Slowly, Americans are losing their brand loyalty and turning more toward authentic, personal experiences; this new experimental series of locally-branded not-Starbucks is a great attempt at capitalizing on that. Whether Starbucks can maintain this focus on consumers' trending desires will determine whether the company's next several quarters continue to reverse its losing trend.