Core Viewpoint - Starbucks' fiscal third-quarter results were mixed, with revenue growth but significant declines in earnings per share and comparable sales in North America [1][4]. Financial Performance - Total revenue for Q3 FY 2024 was $9.11 billion, increasing to $9.46 billion in Q3 FY 2025, representing a 4% growth and beating expectations [2]. - Adjusted earnings per share fell from $0.93 to $0.50, a decline of 46%, which missed expectations [2]. - North America comparable sales remained unchanged at -2%, while international comparable sales improved by 7 percentage points, moving from -7% to 0% [2]. Business Insights - The company reported a 4% global revenue increase, with a 2% rise in North America and a 9% increase in the international segment [4]. - Despite the revenue growth, global comparable sales decreased by 2%, driven by a 2% drop in North America, while international sales remained flat [4]. - CEO Brian Niccol expressed confidence in the company's turnaround, stating that significant progress has been made and a "wave of innovation" is expected next year [5]. Market Reaction - Following the quarterly release, Starbucks' stock rose by 5% in after-hours trading, indicating investor acceptance of the CEO's optimistic outlook despite the earnings miss [6]. Regional Performance - China showed positive signs with comparable sales increasing by 2% year over year, reversing a previous decline, and the company opened over 500 new locations in China in the past 12 months [7].

Financial Data and Key Metrics Changes - Total company net revenue for Q3 was $9.5 billion, reflecting a 3% increase year-over-year, driven by 6% net new company-operated store growth, partially offset by a 2% decline in comparable store sales [40][41] - Global operating margin was 10.1%, a decrease of 650 basis points from the prior year, primarily due to deleverage and investments in the Back to Starbucks strategy [49] - Earnings per share (EPS) for Q3 was $0.50, down 45% from the prior year, mainly reflecting the impact of expense deleverage and investments [50] Business Line Data and Key Metrics Changes - In North America, comparable sales declined by 2%, with the U.S. experiencing a transaction comp decline of less than 4% [40][41] - Canada reported low single-digit sales comp growth, driven by product innovation, particularly in food [44] - The international segment achieved over $2 billion in quarterly revenue for the first time, with strong performance in the UK and Mexico [28][45] Market Data and Key Metrics Changes - Starbucks China's comparable store sales grew by 2%, driven by a 6% improvement in comparable transactions, supported by successful product innovation and marketing campaigns [46][28] - The UK and Mexico showed positive comparable sales performance, while Japan faced challenges with negative comparable sales due to soft consumer sentiment [31][46] Company Strategy and Development Direction - The company is focused on the "Back to Starbucks" strategy, which aims to enhance customer service and operational efficiency, with significant investments in the Green Apron service model [5][14] - Plans include a comprehensive evaluation of the coffee house portfolio to ensure alignment with brand and customer expectations, targeting at least 1,000 uplifts across North America by the end of 2026 [20][21] - The company aims to innovate its menu and enhance the Starbucks Rewards program to better recognize customer loyalty and engagement [86][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the turnaround strategy, noting early signs of progress in partner engagement and customer satisfaction [8][12] - The company anticipates that investments in labor and operational improvements will yield healthier margins over time, with a focus on disciplined capital deployment [54][53] - Management acknowledged the dynamic environment regarding coffee prices and tariffs but remains optimistic about future growth opportunities [52][53] Other Important Information - The company plans to hold an Investor Day in early 2026 to provide insights into long-term strategies and performance expectations [66][68] - The Green Apron service model is set to roll out across all U.S. company-operated stores, aiming to standardize customer service and operational efficiency [14][72] Q&A Session Summary Question: Investment in stores and cost offsets - Management highlighted the importance of the Green Apron service as a foundational operating model and is working on cost structure efficiency across the P&L [58][59] Question: Long-term margin expectations - Management indicated that 2019 margins serve as a guidepost for future profitability, emphasizing the need to drive top-line growth first [65][66] Question: Green Apron service rollout - The Green Apron service model will begin rolling out mid-August, with expectations for gradual implementation across stores [71][72] Question: Marketing impact on transactions - Management noted improvements in marketing effectiveness and operational progress, contributing to increased transactions [78][79] Question: Food innovation opportunities - Management acknowledged successful food initiatives in Canada and plans to leverage successful food offerings globally [80][81]

Financial Data and Key Metrics Changes - Total company net revenue for Q3 fiscal year 2025 was $9.5 billion, reflecting a 3% increase year-over-year, driven by 6% net new company-operated store growth, partially offset by a 2% decline in comparable store sales [39][40] - Global operating margin was 10.1%, a decrease of 650 basis points from the prior year, primarily due to deleverage and investments in the Back to Starbucks strategy [47] - Earnings per share (EPS) for Q3 was $0.50, down 45% from the prior year, mainly reflecting the impact of expense deleverage and investments in the Back to Starbucks strategy [49] Business Line Data and Key Metrics Changes - In North America, comparable sales in the U.S. declined by 2%, while Canada experienced low single-digit sales growth, driven by product innovation [7][43] - The college and university license business saw year-over-year comparable sales growth in the low double digits, indicating renewed brand engagement among younger customers [10] - The delivery business achieved over 25% year-over-year transaction growth, contributing positively to overall performance [11] Market Data and Key Metrics Changes - Internationally, the segment posted over $2 billion in quarterly revenue for the first time, with seven out of the top ten markets showing positive comparable sales, particularly in the UK and Mexico [27][44] - In China, comparable store sales grew by 2%, driven by a 6% improvement in transactions, supported by successful product innovation and marketing campaigns [45][28] - The UK and Turkey markets showed continued momentum with improving comparable sales performance, while Latin America maintained double-digit year-over-year growth in system sales [30][31] Company Strategy and Development Direction - The company is focused on the "Back to Starbucks" strategy, which aims to enhance customer experience and operational efficiency, with significant investments in labor and service standards [5][6] - The rollout of the Green Apron service model is a key initiative aimed at establishing consistent and scalable customer service standards across all U.S. stores [15][72] - Future innovations will include a robust menu pipeline and enhancements to the Starbucks Rewards program, aimed at increasing customer loyalty and engagement [23][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the turnaround strategy, noting early signs of progress in partner engagement and customer satisfaction metrics [32][52] - The company anticipates that investments in operational improvements will yield healthier margins over time, despite current margin pressures [49][53] - An Investor Day is planned for early 2026 to provide further insights into long-term growth strategies and financial performance expectations [34][65] Other Important Information - The company is conducting a comprehensive evaluation of its store portfolio to ensure alignment with brand and customer expectations, with plans to complete this by the end of the fiscal year [46][21] - The introduction of new product innovations, such as Protein Cold Foam, is expected to enhance customer offerings and drive sales [24][25] Q&A Session Summary Question: What are the cost offsets related to the $500 million investment in labor hours? - Management indicated that they are working across the entire P&L to identify cost structure efficiencies, with both short-term and long-term strategies in place [59][60] Question: Can the company return to pre-COVID margin levels? - Management views 2019 margins as a reasonable benchmark and is focused on driving top-line growth while establishing a cost structure that supports profitability [65][66] Question: How quickly will the Green Apron service model be implemented across stores? - The rollout will begin mid-August, with a focus on ensuring proper staffing and operational consistency before full implementation [72][73] Question: What is driving the sequential improvement in transactions? - Management attributed improvements to better marketing efforts and operational progress, with a focus on enhancing customer experience [78][79] Question: What changes are expected in the rewards program? - The rewards program will be reimagined to better recognize customer loyalty and engagement, moving away from a one-size-fits-all discounting approach [86][87]

星巴克（SBUX）美股盘后一度涨约4%。 ...

Group 1 - The core viewpoint is that Starbucks aims to retain a significant stake in its Chinese operations amidst interest from over 20 parties [1]

Hey, Morgan. Starbucks reporting a revenue beat here for Q3. Nine and a half billion.That's better than the 9.31% billion estimated by analysts. EPS50 cents adjusted. We're not going to be comparing that to estimates due to an 11cent charge from a nonrecurring significant investment in its recent leadership experience conference and a non-discreet item.Same store sales down 2%. That's a bit worse than the 1.3% drop the street was expecting the sixth quarter of sales contractions in a row. North America sale ...

Core Insights - Starbucks reported a larger-than-expected decline in third-quarter global comparable sales, with same-store sales down 2%, marking the sixth consecutive quarterly contraction [1][4] - The decline was greater than analysts' average estimate of a 1.19% dip, indicating cautious consumer spending affecting demand [1] Sales Performance - Same-store sales in North America also fell by 2%, consistent with the previous year's decline [6] - Customer visits decreased by an average of 0.1% from April to June, an improvement compared to a 0.9% drop in the prior three months, suggesting early signs of recovery from the "Back to Starbucks" initiative [6] Strategic Initiatives - CEO Brian Niccol has implemented a simplified menu, introduced freshly baked food items, and emphasized quicker service as part of a brand reset since taking over in August [2] - The company plans to increase staffing investments in all 10,000-plus Starbucks-owned US stores by the end of summer [4][7] Financial Impact - CFO Cathy Smith noted that a significant non-recurring investment in the Leadership Experience 2025 and a discrete tax item negatively impacted Q3 EPS by 11 cents [5]

About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...

Financial Performance - Starbucks' global net revenue reached $8.8 billion, a 3% year-over-year increase[3] - The company's global operating margin was 8.2%, a decrease of 450 basis points year-over-year[3] - Diluted net earnings per share (EPS) were $0.41, a 38% year-over-year decrease[3] Sales and Store Growth - Overall comparable store sales decreased by 1%[3] - North America's comparable store sales decreased by 2%[3] - China's comparable store sales remained flat at 0%[3] - The global store count increased by 5% year-over-year, reaching 40,789 stores[3] Strategic Direction - The company is focused on its "Back to Starbucks" plan to improve the business[2] - Starbucks aims to re-introduce the Starbucks experience to the world by focusing on customer service, coffee quality, and community coffeehouses[6, 7, 8] - The company emphasizes its mission to be the premier purveyor of the finest coffee, inspiring and nurturing the human spirit[5]

Group 1 - The core revenue for Starbucks in Q3 reached $9.5 billion, surpassing analyst expectations of $9.29 billion [1] - Same-store sales declined by 2% in Q3, while analysts had anticipated a decrease of 1.5% [1] - North American same-store sales fell by 2% in Q3, slightly better than the expected decline of 2.49% [1] Group 2 - U.S. same-store sales decreased by 2% in Q3, compared to an expected decline of 2.53% [1] - In contrast, same-store sales in China grew by 2% in Q3, exceeding analyst expectations of a 1.44% increase [1]