Core Insights - Starbucks reported a return to growth in quarterly same-store sales for the first time in nearly two years, indicating the success of its turnaround strategy [1] - Global same-store sales increased by 1%, driven by international markets, while U.S. same-store sales were flat but turned positive in September [1] - The company’s fiscal fourth-quarter net income was $133.1 million, or 12 cents per share, a significant decrease from $909.3 million, or 80 cents per share, a year earlier [2] Financial Performance - Excluding restructuring costs and other items, adjusted earnings per share were 52 cents, slightly below the expected 56 cents [6] - Net sales rose by 5% to $9.57 billion, surpassing the expected $9.35 billion [6] Strategic Initiatives - The company closed 627 locations and laid off approximately 900 nonretail employees as part of a restructuring plan [3] - Starbucks has been investing in labor by adding assistant store managers to many North American cafes, which impacted operating margins [3] - To enhance U.S. sales, the company focused on improving in-store customer experience and reducing service times to under four minutes per order [4] Market Performance - In China, same-store sales increased by 2%, supported by a 9% rise in traffic, despite competition from local rivals [5] - The company is considering selling a stake in its China business, which is valued at over $10 billion [5]

Financial Performance - Q4 consolidated net revenues increased by 5% to $9.6 billion, with a GAAP EPS of $0.12 and a non-GAAP EPS of $0.52[1][4] - Total net revenues for the quarter ended September 28, 2025, were $9,569.0 million, representing a 5.5% increase compared to $9,074.0 million for the same quarter in 2024[25] - For the year ended September 28, 2025, total net revenues were $37,184.4 million, a 2.8% increase from $36,176.2 million in 2024[26] - The company's operating income for the quarter was $278.2 million, a decrease of 78.7% compared to $1,306.9 million in the same quarter last year[48] - Net earnings attributable to Starbucks for the quarter were $133.1 million, down 85.4% from $909.3 million in the same quarter last year[25] - Net earnings attributable to Starbucks for the year were $1,856.4 million, a decrease of 50.6% from $3,760.9 million in the previous year[26] - Non-GAAP diluted EPS for the year was $2.13, down 35.6% from $3.31 in the previous year[49] Store Operations - The company closed 107 stores in Q4, ending with 40,990 stores, including 627 closures as part of the restructuring plan[4][5] - The total number of company-operated stores in North America decreased by 435 in Q4 FY25, resulting in a total of 11,018 stores[39] - The total number of international company-operated stores increased by 219 in Q4 FY25, reaching 10,496 stores[39] Revenue Segmentation - Company-operated stores generated revenues of $7,862.0 million, a 5.6% increase from $7,442.1 million in the prior year, accounting for 82.2% of total net revenues[25] - North America total net revenues increased by 3.1% to $6,901.5 million in Q4 2025, driven by a 4.3% rise in company-operated store revenues[27] - International total net revenues rose by 9.4% to $2,070.9 million in Q4 2025, with company-operated store revenues up 11.2%[28] - The Channel Development segment saw a 17% increase in net revenues to $542.6 million, primarily due to growth in the Global Coffee Alliance[11] Operating Margins and Expenses - GAAP operating margin contracted by 1,150 basis points year-over-year to 2.9%, primarily due to restructuring costs and inflation[4][7] - Non-GAAP operating margin decreased by 500 basis points year-over-year to 9.4%[4] - Total operating expenses increased by 19.1% to $9,376.0 million, compared to $7,870.5 million in the previous year[25] - Store operating expenses as a percentage of company-operated store revenues increased to 55.5% from 51.4% year-over-year[26] - Total operating expenses in North America surged by 21.2% to $6,593.0 million in Q4 2025, primarily due to higher store operating expenses[27] Strategic Initiatives - The company announced a cash dividend of $0.62 per share, reflecting a commitment to consistent value creation for shareholders[18] - Starbucks opened its first flagship store in Spain at Real Madrid's Santiago Bernabéu Stadium, enhancing community connections[18] - The company is the official coffee partner of the LA28 Olympic and Paralympic Games and Team USA, indicating strategic partnerships for brand visibility[18] - Restructuring and impairments for the year amounted to $892.0 million, reflecting a significant strategic shift[26] Cash Flow and Assets - Net cash provided by operating activities decreased to $4,747.5 million in 2025 from $6,095.6 million in 2024, a decline of 22.2%[34] - Total assets increased to $32,019.7 million in 2025 from $31,339.3 million in 2024, representing a growth of 2.2%[32] Comparable Store Sales - Global comparable store sales grew by 1%, driven by a 1% increase in comparable transactions, while North America and U.S. comparable store sales were flat[4][5] - Comparable store sales remained flat at 0% in Q4 FY25, compared to a decline of 6% in Q4 FY24[37] - In China, net revenues increased by 6% to $831.6 million in Q4 FY25 from $783.7 million in Q4 FY24[38]

Core Insights - Starbucks has ended a prolonged sales decline, reporting a 1% increase in global same-store sales for the fiscal fourth quarter, marking the first rise in nearly two years [1][2] Sales Performance - The increase in same-store sales was primarily driven by international markets, which saw a 3% rise, while U.S. same-store sales remained flat with a 1% increase in spending per transaction but a 1% decrease in transactions [2] - In the previous quarter, U.S. same-store sales had fallen by 2%, indicating a recovery trend [2] Management and Strategy - CEO Brian Niccol highlighted that the results reflect the effectiveness of the turnaround strategy implemented after his arrival over a year ago, which includes new hospitality standards and store redesigns [3] - The company has also improved staffing levels to better manage peak hours, contributing to enhanced customer experience [3] Operational Improvements - New software has been introduced to optimize order sequencing for drive-thru, in-store, and mobile orders, significantly reducing wait times [4] - Currently, 80% of company-operated U.S. stores have in-store wait times averaging four minutes or less, even during high-volume periods [4] Financial Impact - Starbucks incurred $755 million in restructuring charges during the fourth quarter, which included layoffs of 900 non-retail employees and the closure of 627 stores, primarily in North America [5] - The company's profit fell 85% to $0.12 per share, with adjusted earnings of $0.52 per share, which was below the expected $0.56 [6] Revenue Growth - Net revenue for the July-September period rose by 5% to $9.6 billion, surpassing Wall Street's expectation of $9.3 billion [7] - The company anticipates that improvements in service and product innovations will lead to stronger sales in the future [7]

Starbucks on Wednesday posted its first quarter of global comparable sales growth after nearly a year-and-a-half, helped by a recovery in international markets, though growth still eluded its U.S. ope... ...

Welcome back to Market on Close. We're taking a look at Starbucks. The stock is down 14% over the last 52 weeks and is due to report its earnings after the bell today.The coffee giant is expected to report fourth quarter EPS of 55 cents on $9.3% billion in revenue. Today's earnings will conclude the first full year in charge for Brian Nickel, who joined last September after leaving the same role at Chipotle. And now it's time for Options Corner.We're going to feature Starbucks ahead of their earnings. talk ...

You can find original article here Nrn. Subscribe to our free daily Nrn newsletters. Ahead of Starbucks’ third-quarter earnings release, a group of Starbucks investors — Strategic Organizing Center (SOC) Investment Group — sent a letter to the company’s executive board directors criticizing Starbucks for both its ongoing financial challenges and alleged labor law violations.  “Since the board named Mr. Niccol CEO, Starbucks has continued to struggle financially, and the board’s actions have failed t ...

Core Insights - Starbucks is expected to report adjusted earnings per share of $0.55 on revenue of $9.34 billion for its fiscal fourth quarter, indicating a 31% decline in adjusted earnings and a 2.6% rise in sales year-over-year [1] - Analysts predict no growth in US same-store sales, while a modest increase of 2.2% is anticipated in China [2] - The company is undergoing a $1 billion restructuring effort, which includes closing unprofitable locations and eliminating 900 non-retail jobs [3] Financial Performance - The expected adjusted earnings per share of $0.55 represents a significant decline compared to the previous year [1] - Revenue expectations of $9.34 billion reflect a slight increase in sales, contrasting with the decline in earnings [1] - Year-to-date, Starbucks stock has decreased by over 7%, while the S&P 500 has increased by more than 17% [2] Sales Trends - US same-store sales are projected to drop by 1.9% for the full year, with a 0.5% decline expected in China [2] - Visitation trends have not shown improvement in the current quarter, which may impact sales performance [4] - Recovery in same-store sales, particularly during the holiday season, is deemed crucial for the company's near-term share price performance [5] Strategic Initiatives - The company is implementing a restructuring plan that includes closing unprofitable locations and cutting corporate jobs [3] - The return of popular seasonal products, such as the pumpkin spice latte, has not generated significant excitement among investors [3]

Core Insights - Starbucks reported quarterly results that showed profits missed forecasts, but the first positive quarter of global same-store sales in nearly two years led to a rise in shares [1][3]. Financial Performance - In the fiscal fourth quarter ended September 28, Starbucks reported adjusted earnings per share of $0.52, missing forecasts of $0.55. Revenue was $9.6 billion, exceeding expectations of $9.34 billion [2]. - US same-store sales were flat, aligning with estimates, while same-store sales in China rose by 2%, slightly below the expected 2.2% [2]. Global Sales Trends - Global same-store sales increased by 1%, surprising analysts who forecasted a 0.5% decline, marking the first positive global comp sales in seven quarters [3]. - Following the earnings release, Starbucks stock initially rose by 3% but later lost gains in after-hours trading [3]. Strategic Changes - The company closed 627 stores during the fiscal year, with 90% located in North America, as part of a strategy to eliminate unprofitable locations and reduce corporate jobs, resulting in the elimination of 900 non-retail roles [4]. - CFO Cathy Smith indicated that the closed stores did not meet customer experience standards, despite potential profitability [5]. Market Outlook - Analyst Chris O'Cull noted that visitation trends have not improved in the current quarter, emphasizing that signs of same-store sales recovery during the holiday season will be crucial for near-term share price performance [6]. - CEO Brian Niccol expressed optimism about trends in the fiscal first quarter but acknowledged that customers are becoming more selective in their spending [6].

Starbucks Corp. has poured millions into rehabbing its stores to get more people through its doors and to hang out for longer. Neither of those things is happening. https://t.co/sDRqhl1WQE ...

Core Insights - Boyu Capital is the leading contender to acquire a controlling stake in Starbucks's China operations, potentially valuing the business at over $4 billion [1][2] - The negotiations between Starbucks and Boyu are expected to take several months and are not guaranteed to result in a deal [1] - Starbucks's China operations have drawn interest from over 20 potential investors during the fundraising process [4] Company Overview - Starbucks launched its first store in mainland China in 1999 and currently operates 7,800 outlets across 250 cities [3] - The company reported attributable net earnings of $558.3 million for Q3 FY25, a decline of 47% year-on-year, while consolidated net revenues grew almost 4% to $9.45 billion [5] Investment Landscape - Boyu Capital, established in 2011, invests across various sectors including real estate, infrastructure, private equity, and renewable energy [3] - Other investors, including internet companies, may participate as limited partners to co-finance the potential transaction [2]