Starbucks just pre-released its sales figures, and they show its new CEO has an uphill struggle ahead

Core Insights - Starbucks pre-released its fourth-quarter and annual earnings, revealing a decline in sales in key markets, particularly the US and China, indicating challenges for the new CEO Brian Niccol [1][2] Financial Performance - Comparable sales fell 7% for the fourth quarter, with a 6% decline in US stores and a 14% drop in China; global sales decreased by 2% for the fiscal full year [2] - The company suspended its guidance for the 2025 fiscal year due to the CEO transition and current business conditions [2] Strategic Plans - The company aims to assess its business and solidify key strategies for long-term growth, as stated in a press release [3] - A dividend increase from $0.57 to $0.61 was announced to boost confidence in the business during the turnaround process [3] - CEO Brian Niccol acknowledged that Starbucks has "drifted from our core," leading to decreased customer visits, and emphasized the need to reintroduce the brand [3][4] Future Outlook - Niccol plans to share more about his turnaround strategy on a call scheduled for October 30, which was the original date for the earnings release [4]