SBUX Latest Report

Performance Review

Starbucks' total operating revenue in December 2024 was $9.398 billion. Despite a marginal 0.62% increase from the previous fiscal year, the current revenue level still demonstrated its stable performance in the market. Overall, while the revenue in the fourth quarter of 2024 slightly decreased, Starbucks' performance throughout the year still maintained a relatively strong growth.

Key Data in the Financial Report

1. The total operating revenue for the full year 2024 was $36.176 billion, up 0.62% year-on-year.

2. The operating revenue in the fourth quarter of 2024 was $9.074 billion, down 3.14% year-on-year.

3. Global same-store sales decreased by 7% in 2024.

4. The operating revenue in Starbucks China was $2.958 billion, down 1.4% year-on-year.

5. The net profit in 2024 was $3.764 billion, down 8.75% year-on-year.

Peer Comparison

1. Industry-wide Analysis:

The coffee industry as a whole experienced a recovery in the past year, especially after the pandemic, as consumers' demand for dining out increased. Starbucks' revenue growth reflects the strong market demand in the industry. Other competitors like Dunkin' and Peet's Coffee also showed a trend of revenue growth, indicating the revival of the coffee consumption market.

2. Peer Evaluation Analysis:

Compared to peers, Starbucks' total operating revenue growth is outstanding, especially considering its brand influence and market share. If other competitors' revenue growth is lower than Starbucks', it indicates that Starbucks occupies a more favorable position in the market competition and can better meet consumer demands.

Summary

Starbucks' total operating revenue in 2024 showed a certain growth, despite facing some challenges. The rise in market demand, the launch of new products, the expansion of stores, and digital transformation may be important factors driving revenue growth. However, the decline in same-store sales indicates the pressure of market competition and changes in consumer preferences.

Opportunities

1. The launch of new products can attract more customers, especially innovative drinks targeting young consumers.

2. The implementation of the store expansion strategy in tier-three and below cities has the potential to capture more consumers.

3. The convenience brought by digital transformation may enhance customer loyalty and sales.

4. The strong consumption trend in the industry provides Starbucks with further growth space.

Risks

1. The decline in same-store sales may reflect a weakening demand for the brand, and the risk of market share loss needs to be watched.

2. The intensification of price wars in the industry may put pressure on the company's profit margin.

3. Economic fluctuations and changes in consumer spending may affect future revenue growth.

4. New products may not receive the expected market feedback, with the risk of acceptance and sales.