Starbucks Corporation reported a modest increase in consolidated net revenues for fiscal 2024, rising 1% to $36.2 billion compared to $36.0 billion in fiscal 2023. The growth was primarily attributed to the opening of new company-operated stores, which was slightly offset by a decrease in comparable store sales and unfavorable foreign currency translation. Operating income, however, decreased to $5.4 billion in fiscal 2024 from $5.9 billion in fiscal 2023, with the operating margin contracting from 16.3% to 15.0%. Diluted earnings per share also fell to $3.31 from $3.58 in the previous fiscal year. Despite these challenges, Starbucks returned $3.8 billion to shareholders through dividends and share repurchases in fiscal 2024, up from $3.4 billion in fiscal 2023. In terms of business development, Starbucks operates three reportable segments: North America, International, and Channel Development. The company faced...Show More

Starbucks Corporation reported a modest increase in consolidated net revenues for fiscal 2024, rising 1% to $36.2 billion compared to $36.0 billion in fiscal 2023. The growth was primarily attributed to the opening of new company-operated stores, which was slightly offset by a decrease in comparable store sales and unfavorable foreign currency translation. Operating income, however, decreased to $5.4 billion in fiscal 2024 from $5.9 billion in fiscal 2023, with the operating margin contracting from 16.3% to 15.0%. Diluted earnings per share also fell to $3.31 from $3.58 in the previous fiscal year. Despite these challenges, Starbucks returned $3.8 billion to shareholders through dividends and share repurchases in fiscal 2024, up from $3.4 billion in fiscal 2023. In terms of business development, Starbucks operates three reportable segments: North America, International, and Channel Development. The company faced a challenging operating environment, particularly marked by reduced customer traffic. The North America segment saw a 2% revenue increase, while the International segment experienced a 2% decline, and Channel Development revenues decreased by 7%. Looking ahead, under new CEO Brian Niccol, Starbucks is implementing a 'Back to Starbucks' strategy focused on enhancing the customer experience, reestablishing the brand as the community coffee house, and innovating the coffee tasting experience. This strategic shift aims to bring customers back to stores and return to growth. The company remains confident in the strength of its brand and believes these new action plans will position Starbucks for sustainable long-term growth. Financially, Starbucks expects to continue investing in its core businesses, repay maturing debts, and return cash to shareholders. The company's cash and investments totaled $3.8 billion as of September 29, 2024. Starbucks also manages various market risks, including commodity price risk and foreign currency exchange risk, through hedging strategies.