Starbucks Suspends 2025 Guidance Amid Sales Decline

Starbucks Corp. has suspended its guidance for 2025 following a significant decline in sales, marking the third consecutive quarter of downturn. The coffee chain reported a 7% drop in same-store sales in the fourth quarter, with a notable 10% decline in transactions in the U.S. and a 14% decrease in China. New CEO Brian Niccol emphasized the need for a turnaround strategy, which includes simplifying the menu and revamping marketing efforts. The company’s fourth-quarter revenue fell to $9.1 billion, missing analyst expectations, and earnings per share were also below forecasts. As a result, Starbucks shares dropped nearly 9% in after-hours trading. Analysts warn that the turnaround may take longer than investors anticipate, indicating challenging quarters ahead.