New Takeaways
- Starbucks shares dropped in extended trading Tuesday after the company withdrew its outlook for 2025.
- The company’s preliminary fourth-quarter results also missed expectations.
- CFO Rachel Ruggeri said turning around the business will “take time.”
Starbucks (SBUX) shares dropped in extended trading Tuesday after the company suspended its outlook for 2025. The coffee chain’s preliminary fourth-quarter results also missed expectations.
Starbucks said it would not offer guidance for the 2025 fiscal year, which began this month, citing its transition under new CEO Brian Niccol. The decision “will allow ample opportunity to complete an assessment of the business and solidify key strategies,” the company said.
Preliminary Q4 Results Miss Expectations
Starbucks reported fourth-quarter revenue of $9.1 billion, down 3% year-over-year and below the analyst consensus from Visible Alpha. Earnings per share (EPS) at 80 cents declined from $1.06 a year ago and fell short of expectations of $1.03.
Same-store sales dropped 7% globally and 10% in North America. In the U.S., the decline was 6%, driven by a 10% fall in comparable transactions.
“Despite our heightened investments, we were unable to change the trajectory of our traffic decline, resulting in pressures in both our top-line and bottom-line,” Chief Financial Officer Rachel Ruggeri said.
“We are developing a plan to turn around our business, but it will take time,” she added.
Shares of Starbucks fell close to 4% in extended trading Tuesday following the release.
