Brian Niccol Confident 'Customers Will Come Back' To Starbucks As Company Shifts Strategy Under New CEO: Q4 Earnings

Starbucks Corp SBUX reported fourth-quarter financial results after the bell on Wednesday. Here’s a rundown of the report.

• Q4 Revenue: $9.07 billion, versus estimates of $9.38 billion

• Q4 EPS: 80 cents, versus estimates of $1.03

Comparable store sales declined 7% globally, driven by an 8% decline in comparable transactions, partially offset by a 2% increase in average ticket. Comparable store sales fell 6% in North America, 14% in China and 9% internationally during the quarter. 

Active U.S. rewards memberships reached 33.8 million in the quarter, up 4% on a year-over-year basis. The company opened 722 net new stores in the fourth quarter and ended the period with 40,199 total locations.

“It is clear we need to fundamentally change our strategy to win back customers. ‘Back to Starbucks’ is that fundamental change,” said Brian Niccol, chairman and CEO of Starbucks.

“My experience tells me that when we get back to our core identity and consistently deliver a great experience, our customers will come back. We have a clear plan and are moving quickly to return Starbucks to growth.”

Related Link: Starbucks Pulls The Plug On Howard Schultz’s Brainchild Olive Oil-Infused Drinks As New CEO Brian Niccol Pushes To Simplify Coffee Giant’s Menu

Starbucks reported preliminary financial results for the fourth quarter last week so most of the information in the report was already publicly available. Starbucks shares initially sold off on the preliminary report before bouncing back and turning positive as investors digested commentary from Niccol. The newly appointed Starbucks CEO said he would share more details on Starbucks’ turnaround plans on the company's earnings call, which is scheduled for 5 p.m. ET.

As announced in the company’s preliminary results, Starbucks has suspended its guidance for fiscal year 2025, citing the company’s “CEO transition coupled with the current state of the business.”

Starbucks’ board also declared a cash dividend of 61 cents per share last week. The dividend will be distributed on Nov. 29 to shareholders of record as of Nov. 15.

SBUX Price Action: Starbucks shares were down 0.072% in after-hours, trading at $96.00 at the time of publication Wednesday, according to Benzinga Pro.

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