Starbucks Reports Q4 Sales Down 7%, EPS Misses; Suspends 2025 Guidance, Launches Recovery Plan

Oct 22, 2024, 08:15 PM

Starbucks Corporation reported preliminary financial results for its fourth quarter and full fiscal year 2024, revealing a significant decline in sales and earnings. Global comparable store sales decreased by 7% in Q4, with U.S. sales down 6% and China sales plunging 14%, attributed to intensified competition and a soft macro environment impacting consumer spending. Consolidated net revenues fell 3% to $9.1 billion, missing analyst estimates of $9.38 billion. Adjusted earnings per share were $0.80, below expectations of $1.03. The company suspended its fiscal 2025 guidance and announced a strategic reset under new CEO Brian Niccol, launching the "Back to Starbucks" plan to address declining traffic and improve performance. Starbucks aims to simplify its overly complex menu, fix pricing architecture, address staffing in stores, remove bottlenecks, and simplify operations for baristas. Despite the challenges, Starbucks increased its quarterly dividend by 7% to $0.61 per share, marking the 14th consecutive year of annual dividend increases.