5 Insightful Analyst Questions From Starbucks's Q4 Earnings Call

Starbucks’ results for Q4 were met with a positive market reaction, as the company delivered sales growth above Wall Street’s expectations but reported non-GAAP earnings per share below consensus. Management credited improved transaction volumes and the success of its Back to Starbucks turnaround plan, particularly in the U.S., where both rewards and non-rewards customer transactions grew for the first time in several years. CEO Brian Niccol pointed to a renewed focus on store-level execution and menu innovation as key reasons for the business’s improved top line.

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While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Starbucks’s Q4 Earnings Call

• David E. Tarantino (Baird) asked about underlying North America traffic improvement beyond store closures. CEO Brian Niccol stated the increase was broad-based, driven by both rewards and non-rewards customers, and highlighted strong morning daypart performance.
• Brian James Harbour (Morgan Stanley) inquired about cost opportunities and timing. Niccol outlined a $2 billion, multi-year cost reduction plan covering procurement, technology, and G&A, emphasizing ongoing organizational accountability and adaptability.
• David Sterling Palmer (Evercore ISI) questioned the range of earnings guidance and drivers for high versus low outcomes. Niccol said performance at the higher end depends on sustaining comparable sales growth, with cost reduction as a supporting factor.
• Lauren Danielle Silberman (Deutsche Bank) asked about the gap between rewards and non-rewards transaction growth. Niccol discussed efforts to broaden marketing and menu appeal, while also personalizing rewards to increase engagement and drive repeat visits.
• Zach Fadem (Wells Fargo) requested detail on the path of margin pressures and relief. Smith explained that tariff and coffee cost headwinds are expected to peak by mid-year, with improvements anticipated as cost-saving measures take effect.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be tracking (1) the trajectory of transaction growth in both U.S. and international markets, (2) the timing and impact of margin recovery as cost initiatives roll out and input inflation subsides, and (3) execution of store expansion and new product launches, especially in China and through digital platforms. Delivery on these initiatives will be critical for sustaining momentum and regaining margin leverage.

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