Domain: Finance
Question:
Starbuck's investor relations team needs to prepare key metrics for the Q3 2024 earnings call. Emphasis of the briefing call is on comparable store sales and ticket performance. Round all figures to 2 decimal places. 

 1. For North America, measure the Q3 2024 vs Q3 2023 comparable store sales decline against the contribution from new store revenue. For International, calculate the absolute dollar and percentage change in FX vs last year and the performance from comparable store sales vs last year. Identify the drivers of the Channel Development performance. 

 2. Assess global and regional transaction trends and compare against average ticket performance. Break down the revenue performance to show the portion driven by traffic changes, pricing adjustments, and geographic mix. 

 3. Create a sensitivity analysis for Q4 2024 segment operating income under 3 scenarios:
 - Store traffic is flat to Q3 2024 levels
 - Store traffic is flat to Q3 2023 levels 
 - Store traffic decreases by 20% from Q3 2024 levels

 4. Provide a recommendation if there should be further emphasis on building out the international presence given the above analysis.

Expected points in a correct answer:
Identifies North America Q3 2024 comparable store sales decline as -2% 
Identifies North America Q3 2024 transaction volume decline as -6% 
Identifies North America Q3 2024 average ticket increase as +3% 
Identifies International Q3 2024 foreign exchange impact as -7% or -$105 million 
Identifies International Q3 2024 comparable store sales decline as -7%
Identifies International Q3 2024 average ticket decline as -4% and comparable transactions decline as -3%
Identifies Channel Development Q3 2024 Global Alliance revenue decline as -$21 million 
Identifies Channel Development impact from sale of Seattle's Best Coffee Brand in Q2 2024 
Identifies Channel Development ready-to-drink business revenue increase as +$9 million 
Synthesizes segment-level performance drivers (traffic/pricing in NA, FX/traffic in Intl, portfolio optimization in CD).
Analyzes that traffic declines were a global challenge affecting all segments with -5% global comparable transactions 
Analyzes that pricing provided positive contribution globally with +2% average ticket increase 
Identifies that North America traffic decline was primary driver of comparable store sales decline, partially offset by strategic pricing 
Identifies that International performance was impacted by both traffic and pricing pressures, compounded by FX headwinds 
Concludes that North America demonstrated pricing resilience despite traffic declines, while International faced broader challenges across traffic, ticket, and FX
Identifies Q3 2024 North America operating income as $1,432.70 million 
Identifies Q3 2024 International operating income as $287.50 million 
Identifies Q3 2024 Channel Development operating income as $235.20 million 
Calculates Q4 2024 North America operating income under flat traffic scenario as $1,432.70 million
Calculates Q4 2024 International operating income under flat traffic scenario as $287.50 million
Calculates Q4 2024 Channel Development operating income under flat traffic scenario as $235.20 million 
Calculates Q4 2024 North America operating income under flat to prior year scenario as $1,461.35 million 
Calculates Q4 2024 International operating income under flat to prior year scenario as $293.25 million
Calculates Q4 2024 Channel Development operating income under flat to prior year scenario as $239.90 million 
Calculates Q4 2024 North America operating income under 20% traffic decline scenario as $1,146.16 million 
Calculates Q4 2024 International operating income under 20% traffic decline scenario as $230.00 million 
Calculates Q4 2024 Channel Development operating income under 20% traffic decline scenario as $188.16 million
Calculates total operating income excluding Corporate/Other for flat traffic scenario as $1,955.40 million
Calculates total operating income excluding Corporate/Other for flat to prior year scenario as $1,994.51 million 
Calculates total operating income excluding Corporate/Other for 20% traffic decline scenario as $1,564.32 million 
Synthesizes that International segment operating margin declined year-over-year, largely due to comparable sales weakness and FX impacts.
Assesses whether International headwinds are cyclical/market-driven versus structural brand weakness.
Synthesizes that international expansion should focus on stable, high-growth markets with reliable currencies such as India and Southeast Asia
Recommends continued international expansion, with emphasis on market-specific strategies to drive traffic and mitigate FX/transaction challenges.
Concludes that international expansion should proceed selectively, prioritizing stable, high-growth markets with targeted traffic strategies.