Starbucks' total net revenues for fiscal year 2024 increased by $201 million, or 0.6%, reaching $36.18 billion compared to $35.98 billion in fiscal 2023. This growth was primarily driven by higher revenues from company-operated stores, which rose by $304 million. The increase in company-operated store revenue was attributed to the addition of 1,426 net new stores, representing a 7% increase over the past 12 months. However, this was partially offset by a 2% decline in comparable store sales, driven by a 4% decrease in transactions, although the average ticket size increased by 2%. Unfavorable foreign currency translation also negatively impacted revenues by $235 million.

Licensed store revenues declined slightly by $8 million in fiscal 2024, primarily due to lower product and equipment sales and royalty revenues in the International segment, which were partially offset by gains in the North America segment. Additionally, other revenues decreased by $95 million, largely due to the sale of the Seattle’s Best Coffee brand to Nestlé in fiscal 2023 and product SKU optimization efforts.

Operating income for fiscal 2024 was $5.41 billion, a decline from $5.87 billion in fiscal 2023. This decrease reflects higher operating expenses, which rose to $31.07 billion from $30.49 billion in the prior year. The increase in expenses was driven by investments in store partner wages and benefits, promotional activities, and deleverage, partially offset by pricing adjustments and operational efficiencies.

Net earnings attributable to Starbucks fell to $3.76 billion in fiscal 2024, down from $4.12 billion in fiscal 2023. This decline was reflected in diluted earnings per share, which decreased to $3.31 from $3.58 in the prior year. The reduction in net earnings was influenced by higher operating expenses and a slight contraction in operating margins.

North America segment performance: Total net revenues for the North America segment increased by $440 million, or 2%, to $27.01 billion in fiscal 2024. This growth was driven by the addition of 533 net new company-operated stores, representing a 5% increase, and higher product and equipment sales to licensees. However, comparable store sales declined by 2%, primarily due to a 5% decrease in transactions, partially offset by a 4% increase in average ticket size. Operating income for the segment decreased by 3% to $5.36 billion, with operating margins contracting by 90 basis points to 19.8%, due to higher wages, benefits, and promotional activities.

International segment performance: Total net revenues for the International segment decreased slightly to $7.34 billion in fiscal 2024, compared to $7.49 billion in fiscal 2023. The decline was attributed to unfavorable foreign currency impacts and lower comparable store sales. However, the segment's operating income remained robust at $1.05 billion, although it was lower than the $1.23 billion reported in fiscal 2023.

Channel Development segment performance: Revenues from the Channel Development segment declined to $1.77 billion in fiscal 2024, down from $1.89 billion in fiscal 2023. This decrease was primarily due to the sale of the Seattle’s Best Coffee brand and changes in product offerings. Despite the revenue decline, the segment contributed $925.9 million in operating income, reflecting its profitability.

Cash flow and liquidity: Starbucks generated $6.10 billion in net cash from operating activities in fiscal 2024, slightly higher than the $6.01 billion in fiscal 2023. The company invested $2.78 billion in property, plant, and equipment, reflecting its ongoing expansion and store renovations. Additionally, Starbucks returned $2.6 billion to shareholders through dividends, an increase from $2.4 billion in fiscal 2023, and declared a higher quarterly dividend of $0.61 per share in the fourth quarter of fiscal 2024.

Segment contributions to total revenues: In fiscal 2024, the North America segment accounted for 75% of total revenues, the International segment contributed 20%, and the Channel Development segment made up 5%. This highlights the continued dominance of the North America segment in Starbucks' overall business performance.