Starbucks Falls Some 5% After Coffee Giant Pre-Releases Declining Fiscal Q4 Numbers

SBUX fell 4.8% to $92.22 shortly before 4:30 p.m. ET after reporting that its non-GAAP earnings per share fell 24% y/y to $0.80, while GAAP EPS dropped 25%, also to $0.80.

Comparable-store sales likewise shed 7%, while consolidated net revenues eased 3% to $9.1 billion.

"Our fourth-quarter performance makes it clear that we need to fundamentally change our strategy so we can get back to growth and that's exactly what we are doing," recently appointed CEO Brian Niccol said in a statement announcing the results.

"I've spent my first several weeks in stores engaging with and listening to feedback from our partners and customers," he said. "It's clear that Starbucks is a much-loved brand, [but] we need to focus on what has always set us apart — a welcoming coffeehouse where people gather and where we serve the finest coffee, handcrafted by our skilled baristas."

SBUX also pre-released results for fiscal-year 2024 as a whole, saying GAAP earnings per share fell 8% year over year to $3.31, while non-GAAP EPS sank 6% from the fiscal 2023, also to $3.31. Global comparable-store sales fell 2%, but consolidated net revenues rose 1% to $36.2 billion.

The coffee chain attributed the generally declining full-year results to a "pronounced traffic decline, including a cautious consumer environment," coupled with company investments that were "not improving customer behaviors, as well as the macro and competitive environment in China pressuring our results further."

Starbucks added that because it has a new CEO, the chains is suspending forward guidance for full-year fiscal 2025 for now.

Nonetheless, the board boosted the company's quarterly dividend to $0.61 a share, up from $0.57 – saying that SBUX "remains committed to creating shareholder value."