Q4 2024 performance
The company’s revenues from North America were weak while in China, it faced heavy competition and a tough macro environment that pressured consumer spending.
Comparable stores sales in the US decreased 6%, caused by a 10% drop in comparable transactions. This was partly offset by a 4% rise in average ticket. Starbucks’ investments in product offerings and marketing failed to drive traffic among both its Starbucks Rewards and non-SR customers.
In China, comparable store sales fell 14%, caused by an 8% drop in average ticket and a 6% decrease in comparable transactions.
FY2024 results
Consolidated revenues for fiscal year 2024 inched up 1% to $36.2 billion. Global comparable store sales fell 2%. GAAP EPS decreased 8% YoY to $3.31. Adjusted EPS dropped 6% on a constant currency basis to $3.31. The full-year results reflected traffic declines and pressures in China.
Strategy and guidance
Starbucks is working on a number of strategies to drive growth. These include simplifying its menu, adjusting its pricing, and changing its marketing. The company’s immediate focus is on returning its largest market, the US, to growth. It is also working on driving recovery in China and its other international businesses.
SBUX has suspended its guidance for fiscal year 2025 due to the CEO transition and the state of its business. It believes this will give it the opportunity to solidify its strategy and stabilize its business for long-term growth.
Dividend hike
The company raised its quarterly cash dividend to $0.61 per share from the previous $0.57 per share.