• Q4 Revenue: $9.1 billion, down 3% from the prior year.

• Q4 Comparable Store Sales: Declined 7%, with an 8% decrease in transactions and a 2% increase in average ticket.

• US Comparable Store Sales: Declined 6%, with a 10% decrease in transactions and a 4% increase in average ticket.

• China Comparable Store Sales: Declined 14%, with an 8% decrease in average ticket and a 6% decrease in transactions.

• Q4 Operating Margin: 14.4%, contracting 370 basis points from the prior year.

• Q4 EPS: $0.80, down 24% from the prior year.

• Full Year Revenue: $36.2 billion, up 1% from the prior year.

• Full Year Operating Margin: 15%, contracting 110 basis points from the prior year.

• Full Year EPS: $3.31, declining 6% from the prior year.

• Active Starbucks Rewards Membership: Grew 4% year-over-year to 33.8 million.

• Dividend Increase: Quarterly cash dividend increased from $0.57 to $0.61 per share.

Release Date: October 30, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Starbucks Corp (NASDAQ:SBUX) reported a 7% net new company-operated store growth, indicating expansion efforts.

• Active Starbucks Rewards membership grew 4% year-over-year to 33.8 million, showing customer engagement.

• The company announced an annual increase in the quarterly cash dividend from $0.57 to $0.61 per share, marking the 14th consecutive year of increases.

• Starbucks Corp (NASDAQ:SBUX) is focusing on improving in-store operational efficiencies, which yielded savings of approximately 150 basis points in the quarter.

• The company plans to eliminate the upcharge for non-dairy milks, potentially enhancing customer satisfaction and loyalty.

Negative Points

• Q4 consolidated revenue was $9.1 billion, down 3% from the prior year, driven by a 7% decline in comparable store sales.

• Traffic declined across all channels and day parts, with the most pronounced decline in the afternoon day part.

• China comparable store sales declined 14%, impacted by intensified competition and a soft macro environment.

• Q4 consolidated operating margin contracted 370 basis points from the prior year, primarily due to deleverage and increased promotional activities.

• The company suspended its guidance for full fiscal year 2025 due to the CEO transition and current business challenges.

Q & A Highlights

Q: What are your key learnings from meeting with baristas, and how do they relate to your past successes at Chipotle? A: Brian Niccol, CEO, shared that baristas love the brand and enjoy crafting espresso drinks. They suggested improvements like bringing back the coffee condiment bar and optimizing staffing during peak hours. Niccol emphasized the importance of simplifying customization and noted similarities with Chipotle, highlighting the commitment of Starbucks partners to the brand.