After publishing initial fourth-quarter numbers indicating a drop in income and profitability, Starbucks (SBUX, Financials) suspended its fiscal 2025 financial projection; Starbucks will release fourth quarter and fiscal year 2024 results on Oct. 30.

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The coffee giant said that adjusted profits per share dropped 24% to $0.80 while sales dropped 3% year over year to $9.1 billion. Though average ticket size increased, U.S. same-store sales dropped 6%, and foot traffic dropped 10%.

Driven by a 6% reduction in foot traffic and an 8% drop in average ticket size, which the business ascribed to heightened competitiveness and a challenging economic climate, same-store sales in China fell 14%.

The new CEO of Starbucks, Brian Niccol, said the business must "fundamentally change" its approach. To help prevent overloading in-store operations, he intends to streamline the menu, change prices, and enhance mobile ordering. After previous CEO Laxman Narasimhan left, Niccolknown for turning around Chipotle Mexican Grill (CMG, Financials)took over. But his task of turning around the ship will take time.

Despite the difficult quarter, SBUX also increased its quarterly dividend from $0.57 to $0.61 per share, indicating confidence in its long-term business future.

This article first appeared on GuruFocus.