Starbucks (SBUX) has released its third quarter results, showing mixed performance. The coffee giant reported revenue of $9.1 billion, falling short of the estimated $9.2 billion, and experienced a 3% decline in same-store sales. However, the company's adjusted earnings per share (EPS) of $0.93 slightly exceeded the expected $0.92. RJ Hottovy, Placer.ai head of analytical research, breaks down the report.

Hottovy notes that investors "were bracing for the worst" due to last quarter's foot traffic trends. However, he points out that the report showed "positive sequential momentum" and progress in product innovation, though he acknowledges that Starbucks still has "some things to work on."

With rising competition in the coffee chain space, Hottovy suggests that Starbucks' main focus should be increasing customer frequency. He emphasizes that Starbucks needs to ask itself, "How do you get that brand back in focus? How do you bring people back into those stores more frequently? I think that's the big message."

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This post was written by Angel Smith