Starbucks(SBUX) Benzinga·2024-10-31 18:08Core Insights - Starbucks Corporation reported fourth-quarter revenues of 9.38 billion, with comparable store sales declining 7% globally [1] - The company is focusing on improving customer wait times to under four minutes across all ordering methods, which is seen as crucial for enhancing customer experience [2] - Analysts have adjusted their earnings per share (EPS) estimates for FY25, with one lowering it to 3.35 and another to 3.98, reflecting concerns over near-term revenue visibility [4][5] Financial Performance - Fourth-quarter revenues were reported at 9.38 billion [1] - Comparable store sales saw a global decline of 7%, driven by an 8% decrease in comparable transactions, partially offset by a 2% increase in average ticket size [1] - FY25 U.S. same-store sales (SSS) growth is estimated at 0.0%, while international SSS growth is projected at -4.8% [4] Analyst Ratings and Forecasts - Wedbush analyst Nick Setyan reiterated a Neutral rating on Starbucks, lowering the price forecast to 98 [1] - TD Cowen analyst Andrew M. Charles maintained a Buy rating with a price forecast of $110, emphasizing the need for customized solutions to achieve the target wait times [4] - The lack of long-term guidance has led analysts to express uncertainty, with one stating that the strategy should achieve durable North America same-store sales growth of over 5% [5] Strategic Initiatives - The company plans to eliminate the upcharge for alternative dairy products, which is expected to impact comparable and operating margins by about 1% in the U.S. [3] - Promotional efforts will shift from offers to marketing, with anticipated lower unit growth in FY25 and upcoming remodels to address current challenges [3] - The focus on simplification and throughput is expected to delay the timeline for significant menu innovation as the company enhances its stage gate process [5]