The earnings call reflects a challenging period for Starbucks with disappointing financial results and strategic shifts needed to address operational inefficiencies and market challenges, especially in China. However, there are clear plans to reinvest in core offerings and improve customer experience, showing potential for stabilization and future growth.

Company Guidance

During Starbucks' Q4 2024 earnings call, the company reported that the full-year EPS was $3.31, reflecting a 6% decline, partially due to a 1% unfavorable impact from a higher effective tax rate. The call highlighted an approximately 250 basis points improvement in margin through in-store and out-of-store efficiency efforts, which resulted in nearly $1 billion of cost reductions. Despite the challenging financial performance, Starbucks announced an increase in its quarterly cash dividend from $0.57 to $0.61 per share, marking the 14th consecutive annual increase with a CAGR of approximately 20%. The company suspended its fiscal year 2025 guidance to reassess its strategy and focus on a business turnaround, which includes reducing new store openings and renovations to reestablish Starbucks as a community coffee house, while also continuing to see strong performance from new stores, with 40% of U.S. company-operated stores experiencing positive comp growth in fiscal year 2024.

Positive Comp Growth in U.S. Stores

Approximately 40% of U.S. company-operated stores had positive comp growth in full fiscal year 2024, with significant contributions from newer stores.

Increase in Quarterly Cash Dividend

Starbucks announced an annual increase in the quarterly cash dividend from $0.57 to $0.61 per share, marking the 14th consecutive year of annual increase at a CAGR of approximately 20%.

Operational Efficiencies Achieved

In-store and out-of-store efficiency efforts collectively delivered roughly 250 basis points of margin improvement for the full year, resulting in nearly $1 billion of cost reductions.

Reinvestment in Core Coffee Experience

Plans to eliminate the upcharge for nondairy milk and reintroduce condiment coffee bars by early 2025, aiming to enhance customer experience.

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Starbucks (GB:0QZH) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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GB:0QZH Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Jul 26, 2018	2018 (Q3)	- / 0.62	0.55	12.73% (+0.07)	―	―
Nov 01, 2018	2018 (Q4)	- / 0.62	0.55	12.73% (+0.07)	―	―
Jan 24, 2019	2019 (Q1)	- / 0.75	0.65	15.38% (+0.10)	―	―
Apr 25, 2019	2019 (Q2)	- / 0.60	0.53	13.21% (+0.07)	―	―
Jul 25, 2019	2019 (Q3)	- / 0.78	0.62	25.81% (+0.16)	―	―
Oct 30, 2019	2019 (Q4)	- / 0.70	0.62	12.90% (+0.08)	―	―
Jan 28, 2020	2020 (Q1)	- / 0.79	0.75	5.33% (+0.04)	―	―
Apr 28, 2020	2020 (Q2)	- / 0.32	0.6	-46.67% (-0.28)	―	―
Jul 28, 2020	2020 (Q3)	- / -0.46	0.78	-158.97% (-1.24)	―	―
Oct 29, 2020	2020 (Q4)	- / 0.51	0.7	-27.14% (-0.19)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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GB:0QZH Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Oct 30, 2024	$96.72	$97.19	+0.48%
Jul 30, 2024	$74.70	$78.22	+4.72%
Apr 30, 2024	$86.84	$71.62	-17.53%
Jan 30, 2024	$91.95	$91.91	-0.04%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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