Starbucks Q4 Preliminary EPS Down; Suspends FY25 Guidance

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(RTTNews) - Starbucks Corp. (SBUX) reported that its preliminary earnings per share for the fourth quarter of fiscal year 2024 was $0.80, down 25% over prior year. Non-GAAP earnings per share was also $0.80, declining 24% on a constant currency basis.

The company's results were primarily hurt by softness in North America's revenues in the quarter, specifically a 6% decline in U.S. comparable store sales, driven by a 10% decline in comparable transactions, partially offset by a 4% increase in average ticket. Additionally, China comparable store sales declined 14%, driven by an 8% decline in average ticket compounded by a 6% decline in comparable transactions, weighed down by intensified competition and a soft macro environment that impacted consumer spending.

Global comparable store for the fourth quarter of fiscal year 2024 sales declined 7%, and quarterly consolidated net revenues declined 3% to $9.1 billion, or a 3% decline on a constant currency basis.

Analysts polled by Thomson Reuters expected the company to report earnings of $1.03 per share and revenues of $9.38 billion for the fourth-quarter. Analysts' estimates typically exclude special items.

Starbucks board approved an increase in the company's quarterly cash dividend from $0.57 to $0.61 per share of outstanding Common Stock. This increase will be effective with the dividend payable on November 29, 2024, to shareholders of record on November 15, 2024, and raises the company's annual dividend rate to $2.44 per share.

Due to the transition in leadership and the current state of the business, the company said it will suspend guidance for fiscal year 2025.

Starbucks plans to release its actual fourth quarter and full fiscal year 2024 financial results after market close on Wednesday, October 30, 2024.

SBUX closed Tuesday's regular trading at $96.82 up $0.37 or 0.38%. But in the after-hours trading, the stock dropped $4.02 or 4.15%.

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