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Starbucks Suspends Its Outlook for 2025, Sending Its Stock Lower [Video]

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Global Marketing Strategies

Starbucks (SBUX) shares dropped in extended trading Tuesday after the company suspended its outlook for 2025. The coffee chain’s preliminary fourth-quarter results also missed expectations.

Starbucks said it would not offer guidance for the 2025 fiscal year, which began this month, citing its transition under new CEO Brian Niccol. The decision “will allow ample opportunity to complete an assessment of the business and solidify key strategies,” the company said. 

Starbucks reported fourth-quarter revenue of $9.1 billion, down 3% year-over-year and below the analyst consensus from Visible Alpha. Earnings per share (EPS) at 80 cents declined from $1.06 a year ago and fell short of expectations of $1.03. 

Same-store sales dropped 7% globally and 10% in North America. In the U.S., the decline was 6%, driven by a 10% fall in comparable transactions. 

“Despite our heightened investments, we were unable to change the trajectory of our traffic decline, resulting in pressures in both our top-line …

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