Q4 2024 Starbucks Corp Earnings Call Transcript
Key Points
- Starbucks Corp (SBUX) reported a 7% net new company-operated store growth, indicating expansion efforts.
- Active Starbucks Rewards membership grew 4% year-over-year to 33.8 million, showing customer engagement.
- The company announced an annual increase in the quarterly cash dividend from $0.57 to $0.61 per share, marking the 14th consecutive year of increases.
- Starbucks Corp (SBUX) is focusing on improving in-store operational efficiencies, which yielded savings of approximately 150 basis points in the quarter.
- The company plans to eliminate the upcharge for non-dairy milks, potentially enhancing customer satisfaction and loyalty.
- Q4 consolidated revenue was $9.1 billion, down 3% from the prior year, driven by a 7% decline in comparable store sales.
- Traffic declined across all channels and day parts, with the most pronounced decline in the afternoon day part.
- China comparable store sales declined 14%, impacted by intensified competition and a soft macro environment.
- Q4 consolidated operating margin contracted 370 basis points from the prior year, primarily due to deleverage and increased promotional activities.
- The company suspended its guidance for full fiscal year 2025 due to the CEO transition and current business challenges.
Good afternoon. My name is Diego and I will be your conference operator today. I would like to welcome everyone to the Starbucks Fourth Quarter and full Fiscal Year 2024 Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions)
I will now turn the conference call over to Tiffany Willis, Senior Vice President of Investor Relations. Ms. Willis, you may now begin your conference.
Thank you, Diego. And good afternoon and thank you everyone for joining us today to discuss Starbucks fourth quarter fiscal year 2024 results. Today's discussion will be led by Brian Niccol, Chairman and Chief Executive Officer; and Rachel Ruggeri, Executive Vice President and Chief Financial Officer
This conference call will include forward-looking statements which are subject to various risks and uncertainties that could cause our actual results to differ materially from
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