Summary by Moomoo AI
Starbucks Corporation reported fiscal 2024 results with consolidated net revenues increasing 1% to $36.2 billion, driven by net new store openings but offset by a decrease in comparable store sales and unfavorable foreign currency impacts. Operating income decreased to $5.4 billion from $5.9 billion last year, with operating margin contracting 130 basis points to 15.0%.North America segment revenue grew 2% on net new store growth, despite a 2% comparable store sales decline driven by 5% lower transactions. International segment revenue fell 2% due to foreign currency headwinds and a 4% comparable sales decline. Channel Development revenue decreased 7% following the sale of Seattle's Best Coffee brand and product optimization efforts.Given pronounced customer traffic declines and performance below expectations, new CEO Brian Niccol announced a "Back to Starbucks" strategy focused on bringing customers back through enhanced experiences, community engagement and coffee innovation. The company remains confident in brand strength but acknowledges the need to refocus efforts on sustainable growth through this strategic reset.
