Oct 30 (Reuters) - Starbucks ( SBUX ) on Wednesday

reported a 7% drop in global comparable sales for the fourth

quarter as the coffee chain struggles to revive demand for its

pricey lattes in the key U.S. and China markets.

Last week, Starbucks ( SBUX ) reported preliminary fourth-quarter

results and suspended annual forecast through the next fiscal

year as new CEO Brian Niccol tries to steer the company toward

the path to growth.

The Seattle-based company's strategy to drive demand through

promotions and improved loyalty program offers fell flat in the

face of muted spending from cost-conscious consumers.

Starbucks ( SBUX ) is also facing an uphill battle in China, where it

is dealing with a choppy macroeconomic recovery and stiff

competition from local brands.

Comparable sales in China, the company's second-largest

market after the U.S., declined for three straight quarters,

falling 14% in the fourth quarter.

Investors, however, are betting on seasoned industry veteran

and ex-Chipotle Mexican Grill head Niccol to simplify the

company's leadership and operating structure, and reinvigorate

the coffee-house culture at Starbucks' ( SBUX ) U.S. stores.

Shares of the company have risen about 26% since Niccol

replaced Laxman Narasimhan as CEO in a surprise announcement in

August.

International comparable sales fell 9% in the fourth

quarter, compared with expectations of a 6.5% drop, as per data

compiled by LSEG.

Starbucks' ( SBUX ) loyalty program growth was also tempered in the

fourth quarter, with 90-day active members in the U.S. remaining

flat sequentially. That compares with a 3% sequential rise

reported in the third quarter.

The company's net income fell to $909.3 million, or 80 cents

per share, from $1.22 billion, or $1.06 per share, a year

earlier in the fourth quarter ended Sept 29.

(Reporting by Juveria Tabassum; Editing by Anil D'Silva)