In This Article:
Starbucks (SBUX) missed fiscal fourth quarter earnings estimates as profits declined 25% year-over-year and global same-store sales fell 7%, higher than Wall Street was anticipating. The coffee chain posted revenue of $9.1 billion (against estimates for $9.33 billion) and adjusted earnings per share (EPS) of $0.80 (against estimates for $1.00).
Starbucks released preliminary earnings figures last week that teased the sales headwinds in US and China stores.
Yahoo Finance senior retail reporter Brooke DiPalma breaks down Starbucks's earnings results ahead of new CEO Brian Niccol's — former Chipotle (CMG) chief executive — first earnings call with the coffee giant.
To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend here.
This post was written by Luke Carberry Mogan.
All right, we've also got the latest reports from Starbucks and Roku just coming out. Yahoo finances, Brooke DePalma and Alexandra Canal, joining us now from work. Brooke, let's start with you. We did recently get a pre-announcement, but there were still a lot of interest in this Starbucks report.
Good afternoon, Julie. That's right. As Wall Street anticipated, these Q4, these four, these official Q4 results were in line with those preliminary announced results announced last Tuesday after market close. Really shocked the street, just in terms of the timing, not necessarily the results. A quick refresher here, in case you missed those. Revenue for the quarter came in down 3% to $9.1 billion. Adjusted earnings per share fell 25% to 80 cents. And same-store sales dropped 7%. That was more than the nearly 4% that Wall Street had expected. That two numbers that investors are really focusing in on is that US foot traffic that did fall 10% in Q4. Now, that's worse than what we saw during the financial crisis for Starbucks. And international same-store sales dragged lower once again by their second largest market, China. In China, we saw same-store sales fall 14%. But investors certainly are looking forward to that 5:00 p.m. Eastern call. Despite much buzz, this will be the new CEO, Brian Niccol, former Chipotle CEO, now Starbucks CEO's first call with investors. And we really expect to hear more about how he plans to restrategize and get Starbucks back to Starbucks, essentially, back to the basics. We know that he plans to simplify the menu, fix pricing after Starbucks increased prices in recent years to offset inflation, and really improve the speed of service. Now, in addition to that, Niccol really plans to get customers back in the door. We know that their reward members have not grown quarter over quarter, and they are still lower than the amount that we saw in Q1.
