In This Article:
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Total Revenue: $8.8 billion.
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Global Net New Store Growth: 213 coffeehouses.
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Global Comparable Store Sales: Decline of 1%.
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Global Operating Margin: 8.2%.
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Earnings Per Share (EPS): $0.41, down 38% from the prior year.
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US Comparable Store Sales: Decline of 2%.
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US Transaction Decline: Improved to negative 4%.
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US Ticket Growth: 3%.
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Canada Comparable Store Sales: Positive with 12.5% higher food sales.
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China Comparable Store Sales: Flat with positive transactions and expanding margins.
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Consolidated Operating Margin Contraction: 450 basis points from the prior year.
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G&A Decline: 3% versus the prior year.
Release Date: April 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Starbucks Corp (NASDAQ:SBUX) reported a total company revenue of $8.8 billion with a global net new store growth of 213 coffeehouses.
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The company has launched a new Green Apron service model to improve peak throughput and customer experience, which will be scaled to more than 2,000 US locations by the end of the fiscal year.
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Starbucks Corp (NASDAQ:SBUX) has seen early indicators of recovery in its North America business, with partner engagement up and turnover dropping to a new recorded low.
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The Canadian business has returned to positive comps with positive transaction growth, indicating a successful turnaround in that market.
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The company is focusing on brand and coffee storytelling, with a new US brand campaign that generated record-breaking customer engagement and drove the second highest Monday gross sales day ever.
Negative Points
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Starbucks Corp (NASDAQ:SBUX) reported a global comparable store sales decline of 1% and a global operating margin of 8.2%, which are below expectations.
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Earnings per share (EPS) for the quarter were $0.41, down 38% from the prior year, reflecting expense deleverage and heightened investments.
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The US market experienced a 2% decline in comparable store sales, with transaction declines improving but still at negative 4%.
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The company's Q2 consolidated operating margin contracted by 450 basis points from the prior year, primarily due to additional labor costs.
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Starbucks Corp (NASDAQ:SBUX) is facing challenges in China, with comparable store sales flat for the quarter, although there are signs of progress with positive transactions and expanding margins.
Q & A Highlights
Q: Can you provide more details on the labor investments and order sequencing over equipment to improve speed and throughput? A: Brian Niccol, Chairman and CEO, explained that the combination of staffing, deployment, and technology is proving effective in achieving the desired customer experience. The company is scaling its labor and algorithm programs to improve service speed and connection, with plans to expand to over 3,000 stores by the end of the fiscal year. The focus is on judicious cost management and leveraging growth to enhance margins and financial results.