Retail coffee chain Starbucks (SBUX) has reported fourth-quarter 2024 financial results that beat Wall Street forecasts on both the top and bottom lines.
The Seattle-based roastery announced earnings per share (EPS) of $0.69 U.S., which topped the consensus expectation of $0.67 U.S.
Revenue in the final quarter of last year came in at $9.40 billion U.S., which beat the $9.31 billion U.S. forecast on Wall Street. Sales were unchanged from a year earlier.
The results come despite Starbucks reporting that its same-store sales declined for a fourth consecutive quarter.
Management said that same-store sales fell 4%, fueled by a 6% decline in foot traffic at its coffee outlets. However, Wall Street was expecting a steeper drop of 5.5% in same-store sales.
Within the U.S., same-store sales declined 4% as foot traffic to its cafes fell 8%. Outside of its home market, same-store sales at Starbucks’ international locations dropped 4%.
In China, the company’s second-largest market, same-store sales slid 6%, fueled by a 4% dip in average ticket prices.
The coffee giant has been relying on discounts in China to compete with domestic rivals such as Luckin Coffee.
Under chief executive officer (CEO) Brian Niccol, Starbucks has undertaken a turnaround strategy that has involved everything from new executives to free coffee refills at its outlets.
Starbucks’ stock has gained 7% in the last 12 months to trade at $100.39 U.S. per share.
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