Starbucks' operating profit dropped by $1.7 billion from the previous year to $948 million in Q4 2024, primarily due to increased costs and lower revenue1:
- Increased Costs: The cost of goods sold rose to $7.1 billion, up from $6.5 billion in the same period last year, significantly impacting the operating profit. This increase suggests higher expenses in sourcing and producing the goods sold during the quarter.
- Lower Revenue: Despite a total revenue of $9.4 billion, which is a slight increase from the previous year, the growth in revenue was not sufficient to offset the increased costs. This could be attributed to factors such as pricing pressures, competitive landscape, or changes in consumer behavior.
In summary, the drop in Starbucks' operating profit in Q4 2024 is primarily due to increased costs and lower revenue, indicating a challenging operating environment for the company during the period.
3/30/2025 06:22am
