On October 31st, it was reported that $Starbucks (SBUX.US)$ Investors need to be prepared, as the company's new CEO Brian Niccol plans to take multiple measures to improve the company's performance.

Niccol stated on Wednesday when the company announced its final performance for the fourth quarter: "Clearly, we need to fundamentally change our strategy to win back customers."

Starbucks' performance this quarter was disappointing, but investors were already aware of this result as the company unexpectedly released a preliminary performance report last week, which ultimately matched.

According to FactSet data, Starbucks reported an adjusted earnings per share of 0.8 USD, well below the previously forecasted 1.03 USD; revenue was 9.1 billion USD, falling short of the expected 9.38 billion USD. Due to declining demand in the North American and Chinese markets, same-store sales fell by 7%, with these two markets being Starbucks' largest markets.

Starbucks has suspended performance guidance as the first step in planning a new direction under Niccol's leadership. Meanwhile, the company announced a 7% dividend increase, aiming to demonstrate the board of directors' confidence in the company's long-term growth.

Since the earnings forecast was released, as of Wednesday's close, Starbucks' stock rose by about 0.9% in a week, outperforming the 0.7% decline in the S&P 500 index. This indicates investors' optimistic outlook on Niccol's ability to turn around the company's business.

Investors' current focus is on Niccol and other executives discussing the turnaround plan during the financial results conference call. In the video accompanying the preliminary performance report release, Niccol mentioned several areas the company aims to improve, including simplifying the menu, adjusting marketing strategies, optimizing mobile orders, restructuring stores, and refocusing on the coffee business while reducing reliance on other products.

Some analysts warn that Niccol may not disclose too many details temporarily. TD Cowen analyst Andrew Charles wrote in a report after the announcement, "We still believe early 2025 is an appropriate time to announce the strategic plan, and we think canceling the 2025 guidance is reasonable. First, Starbucks needs more time to develop the plan and assess its long-term financial impacts, and second, we previously believed that 2025 was a crucial foundational year for Niccol to explore and improve customer flows in the USA."