Starbucks' official quarterly and annual reports

Starbucks Reports 7% Sales Decline, EPS Miss; Shares Drop on Suspended 2025 Guidance

Oct 22, 2024, 08:15 PM

Starbucks reported preliminary results for its fourth quarter and fiscal year 2024, revealing a 7% decline in global comparable store sales and a 3% drop in consolidated net revenues to $9.1 billion, missing analysts' expectations of $9.38 billion. U.S. same-store sales declined by 6%, while China comparable store sales fell sharply by 14%. Adjusted earnings per share were $0.80, below the expected $1.03. The company also announced that it is suspending its guidance for fiscal year 2025. In response to the disappointing performance, which CEO Brian Niccol described as reflecting a "challenged customer experience," Starbucks plans a strategic reset called 'Back to Starbucks' to address issues like declining traffic, overly complex menu offerings, and staffing bottlenecks. Despite declining earnings, the company increased its quarterly dividend by 7% to $0.61 per share, marking the 14th consecutive year of annual dividend increases. Shares of Starbucks fell about 5% in after-hours trading following the announcement.