Starbucks (SBUX) Q4 2024 earnings summary

Executive summary

• Q4 revenue declined 3% year-over-year to $9.1B, driven by a 7% drop in comparable store sales and an 8% decrease in transactions, partially offset by net new store growth.

• Full year 2024 net revenues rose 1% to $36.2B, but global comparable store sales fell 2% as transactions declined and average ticket increased.

• Leadership acknowledged underperformance and announced a "Back to Starbucks" turnaround plan focused on operational basics, menu simplification, pricing clarity, and revitalizing the in-café experience.

• U.S. Starbucks Rewards active members reached 33.8M, up 4% year-over-year but flat sequentially.

• CEO transition and new leadership outlined strategic priorities to restore growth and customer engagement.

Financial highlights

• Q4 operating margin was 14.4%, down 370 bps year-over-year; full year margin was 15%, down 110 bps.

• Q4 EPS was $0.80, down 24–25% year-over-year; full year EPS was $3.31, down 6–8%.

• Global store count reached 40,199, up 6% year-over-year.

• Store operating expenses as a percentage of company-operated store revenues increased to 52.2% in Q4 and 51.4% for the year.

• Cash dividends declared per share increased to $0.61 in Q4 and $2.32 for the year.

Outlook and guidance

• Fiscal 2025 guidance is suspended due to CEO transition and business reassessment; new strategies will be communicated later.

• Store growth and renovation pace will slow in 2025 to accommodate redesign and unlock capital for turnaround.

• No menu price increases planned for North America through fiscal 2025.

• FY25 priorities include enhancing employee experience, winning morning traffic, and reintroducing the brand globally.