- Starbucks’ preliminary fourth-quarter comparable sales decreased by 7%, missing the estimate of a 3.48% decline.
- In the US, preliminary comparable sales fell by 6%, compared to the expected 2.81% drop.
- China’s preliminary comparable sales fell even further, dropping 14% versus the anticipated 10.5% decrease.
- Preliminary adjusted earnings per share were reported at $0.80, below the estimated $1.03.
- Preliminary net revenue was $9.1 billion, missing the $9.36 billion estimate.
- The quarterly cash dividend was increased to $0.61 per share from $0.57.
- Revenue softness was noted in North America.
- Starbucks has suspended guidance for 2025.
- For fiscal year 2024, global comparable store sales dropped by 2%.
- Consolidated net revenues for fiscal year 2024 increased by 1% to $36.2 billion.
- GAAP earnings per share for the fiscal year were $3.31, marking an 8% decrease from the previous year.
- The non-GAAP earnings per share also stood at $3.31, representing a 6% decline on a constant currency basis.
- Starbucks cites a decline in traffic, a cautious consumer environment, and challenging macro conditions in China as key pressures on results.
- The company was unable to reverse the traffic decline despite increased investments.
- Starbucks shares fell 4.9% in post-market trading to $92.11.
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Starbucks Corp on Smartkarma
Analyst coverage on Smartkarma highlights key insights into Starbucks Corp, a global coffee giant undergoing significant changes. Baptista Research‘s report “Starbucks Gambles on New CEO: Will Niccol Turn the Tide or Spill the Beans?” discusses the bold move of appointing Brian Niccol, former Chipotle CEO, who is known for innovation and effective leadership. This follows the departure of Laxman Narasimhan and raises questions about Starbucks’ future under new leadership.
Another report by Baptista Research titled “Starbucks Corporation: Expanded Digital Offerings & Rewards Program Growth & Other Major Drivers” delves into Starbucks’ third-quarter fiscal year 2024 earnings. Despite a 1% year-over-year revenue growth to $9.1 billion, global comparable store sales dropped by 3%, particularly impacted by a significant 14% decline in China. The analysis provides a balanced view of Starbucks’ performance and areas for improvement in an evolving market landscape.
A look at Starbucks Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 0 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 5 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores for Starbucks Corp, the company shows a promising long-term outlook. With high scores in Growth, Resilience, and Momentum, Starbucks is positioned well for future success. A strong growth score indicates potential for expansion and increased market share, while a resilience score suggests the company is well-equipped to weather economic uncertainties. Additionally, a solid momentum score reflects positive investor sentiment and market performance.
Starbucks Corporation, known for its specialty coffee offerings and global retail presence, has received positive ratings in key areas like Dividend and Value. These scores indicate that the company is also focused on rewarding shareholders while maintaining a strong financial position. Overall, with a mix of favorable scores across various factors, Starbucks Corp appears poised for sustained growth and profitability in the long run.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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