• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Stock

Starbucks misses Q4 expectations but new CEO’s plan ‘clear and aspirational’

by October 31, 2024
written by October 31, 2024

Starbucks Corporation (NASDAQ:SBUX) reported fourth-quarter results that fell short of analyst expectations. The coffee giant’s earnings and revenue declined as it faced challenges in customer experience and traffic.

Still, the company’s shares edged higher in Thursday’s premarket as investors focused on encouraging management remarks about future plans.

Starbucks reported adjusted earnings per share of $0.80 for the fourth quarter, missing the analyst estimate of $1.03. Revenue came in at $9.07 billion, below the consensus forecast of $9.38 billion and down 3% YoY.

Global comparable store sales declined 7% in Q4, driven by an 8% drop in comparable transactions, partially offset by a 2% increase in average ticket. North America and U.S. comparable store sales fell 6%, with transactions down 10% but average ticket up 4%.

But despite the disappointing print, Morgan Stanley analysts focused on remarks by Starbucks’s new CEO Brian Niccol, who offered “a clear and detailed vision for the future, and aspirational, like the Starbucks brand when at its best.”

“Some pieces immediate, some longer term, with investment coming and a lot of work ahead,” they added. 

Stifel analysts shared similar comments, noting that Niccol “delivered his message with a level of clarity and precision that is typically the hallmark of a talented leader who knows how to focus an organization on solving the right problems.”

While they expect the next few quarters for SBUX to remain challenging, analysts believe the second half of the fiscal 2025 “should yield meaningful evidence the strategy is working.”

The company’s operating margin contracted 380 basis points YoY to 14.4%, primarily due to deleverage, investments in store partner wages and benefits, and increased promotional activity.

Starbucks opened 722 net new stores in Q4, ending the period with 40,199 locations globally. The Starbucks Rewards loyalty program reached 33.8 million 90-day active members in the U.S., up 4% YoY but flat quarter-over-quarter.

CEO Brian Niccol acknowledged the need for change, stating, “It is clear we need to fundamentally change our strategy to win back customers. ‘Back to Starbucks’ is that fundamental change.”

For the full fiscal year 2024, Starbucks reported a 2% decline in global comparable store sales and a 1% increase in consolidated net revenues to $36.2 billion.

“Our results do not reflect the strength of our brand,” said Rachel Ruggeri, chief financial officer. “I have confidence in our ability to turn around our business and expect we will return to long-term growth.”

Senad Karaahmetovic contributed to this report. 

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
Biden administration selects New York for semiconductor R&D facility
next post
Li Auto stock falls as Q3 earnings beat fails to impress

You may also like

BASF results down on impairments, restructuring

January 27, 2025

European chipmakers slump as traders gauge DeepSeek AI...

January 27, 2025

Nasdaq futures tumble as China’s AI push rattles...

January 27, 2025

China Vanke’s CEO, chairman resign amid growing liquidity...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

Italy’s MPS shares fall ahead of Mediobanca board...

January 27, 2025

British Land stock drops following stake sale

January 27, 2025

UMG shares rally after new multi-year pact with...

January 27, 2025

BASF shares indicated 3% lower as impairments drag...

January 27, 2025

Ryanair cuts 2026 traffic forecast amid ongoing Boeing...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks

      June 26, 2025
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

      June 26, 2025
    • Bumble shares jump 26% as dating company plans to axe 30% of workforce

      June 26, 2025
    • Small-business AI use is lagging, but one firm is channeling Sherlock Holmes and knocking out ‘grunt work’

      June 25, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (534)
    • Stock (6,426)

    Latest News

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

    Popular News

    • Greece stocks higher at close of trade; Athens General Composite up 1.33%
    • US FTC, Colorado sue property firm Greystar, alleging renters deceived by hidden fees

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy