Summary
Starbucks Corporation's fiscal year 2024 filing indicates a challenging year marked by a 1% increase in net revenues to $36.2 billion, largely driven by new store openings, but this was offset by a 2% decline in comparable store sales and unfavorable foreign currency translation. The company experienced a decrease in operating income to $5.4 billion and diluted earnings per share to $3.31. This performance was attributed to reduced customer traffic and the impact of investments that did not fully improve customer behaviors as intended, alongside macroeconomic and competitive pressures in China. In response, Starbucks is implementing a "Back to Starbucks" strategy under new CEO Brian Niccol, focusing on reinvesting in partners, enhancing customer experience, and driving innovation. The company continues to invest in its workforce, offering comprehensive benefits and focusing on diversity and inclusion. Despite operational challenges, Starbucks returned $3.8 billion to shareholders through dividends and share repurchases in fiscal year 2024. The company maintains a strong liquidity position with a $3.0 billion revolving credit facility and no outstanding borrowings as of the fiscal year-end. The report also highlights ongoing efforts in cybersecurity and a commitment to ESG initiatives, while acknowledging risks related to competition, supply chain, and macroeconomic conditions.
Financial Highlights
55 data points| Revenue | $36.18B |
| Operating Expenses | $31.07B |
| Operating Income | $5.41B |
| Interest Expense | $562.00M |
| Net Income | $3.76B |
| EPS (Basic) | $3.32 |
| EPS (Diluted) | $3.31 |
| Shares Outstanding (Basic) | 1.13B |
| Shares Outstanding (Diluted) | 1.14B |
Key Highlights
- 1Consolidated net revenues increased 1% to $36.2 billion in fiscal year 2024, primarily due to net new company-operated store growth, partially offset by a 2% decline in comparable store sales and unfavorable foreign currency translation.
- 2Operating income decreased to $5.4 billion in fiscal 2024 from $5.9 billion in fiscal 2023, with operating margin contracting 130 basis points to 15.0%, largely due to investments in partner wages and benefits and deleverage.
- 3Diluted earnings per share (EPS) decreased to $3.31 in fiscal 2024 from $3.58 in fiscal 2023, reflecting the contraction in operating margin.
- 4Starbucks is undergoing a strategic reset with its "Back to Starbucks" plan under new CEO Brian Niccol to address customer traffic decline and return to growth.
- 5Capital expenditures increased to $2.8 billion in fiscal 2024 from $2.3 billion in fiscal 2023, reflecting continued investment in store development and other initiatives.
- 6The company returned $3.8 billion to shareholders in fiscal 2024 through dividends ($2.6 billion) and share repurchases ($1.3 billion).
- 7As of September 29, 2024, Starbucks had $3.8 billion in cash and investments and maintained a $3.0 billion unsecured revolving credit facility with no outstanding borrowings.