On October 22 local time, Starbucks (Nasdaq: SBUX) announced its preliminary financial results for the fourth quarter and full year ending September 29, 2024. According to the financial report, Starbucks' global same store sales in the fourth quarter of fiscal year 2024 decreased by 7%, and net revenue decreased by 3% to $9.1 billion. GAAP earnings per share were $0.80, a decrease of 25% compared to the same period last year.
Starbucks stated in the announcement that its performance was mainly affected by weak revenue in North America this quarter, with same store sales in the United States decreasing by 6% and comparable transaction volume decreasing by 10%, but average spending per transaction increasing by 4%. Starbucks realized that accelerating the expansion of its product range and more frequent promotional activities did not improve its performance very well.
In China, due to intensified industry competition and changes in the macro consumption environment, the average consumption per transaction in the Chinese market has decreased by 8%, comparable transaction volume has decreased by 6%, and same store sales in China have decreased by 14%.
Despite our increased investment, we are unable to change the trend of declining foot traffic, which has put pressure on both our revenue and profits, "said Rachel Ruggeri, Chief Financial Officer of Starbucks. He stated that the company is developing a plan to reverse its declining performance, but this will take time.
Our fourth quarter performance indicates that we need to fundamentally change our strategy in order to restore growth, and this is exactly what our 'Back to Starbucks' plan is doing, "said Brian Niccol, Starbucks Chairman and CEO.
Brian Nichol assumed the position of Chairman and CEO of Starbucks on September 9th. The market is generally optimistic about Nicole's appointment, as Starbucks' stock price surged 24.5% on the day of the official announcement of the change of leadership in August. Since taking office, Nicole has been restructuring Starbucks' leadership and has released an outline of a growth stimulus plan.
Starbucks also announced in this announcement that, given that the company's CEO is still in a transitional stage and the current business situation, it will temporarily suspend the release of guidance for the entire 2025 fiscal year. This will provide ample opportunities to complete the evaluation of the business and consolidate key strategies, while stabilizing the business to achieve long-term growth.