Starbucks, the world's largest coffee chain, reported a significant downturn in its fourth quarter of fiscal year 2024. The company saw a 3% decrease in revenue to $9.1 billion, while earnings per share fell to $0.80. The crucial U.S. market experienced a 10% decline in transactions, partially offset by higher average customer spending. For the full year 2024, Starbucks posted revenue of $36.2 billion and earnings per share of $3.31. These disappointing results have prompted the company to reevaluate its business strategy.
New CEO's Revitalization Plan
In response to the underwhelming performance, the newly appointed CEO has outlined comprehensive changes aimed at reinvigorating the business. The plan includes enhancing customer comfort with improved seating, reducing wait times, and eliminating surcharges for milk alternatives in U.S. locations. Additionally, the company intends to streamline its beverage offerings to decrease complexity and boost efficiency. Despite current challenges, Starbucks has committed to maintaining current pricing in the upcoming fiscal year, a move designed to retain customer loyalty and stimulate growth.
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