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Starbucks CEO on business in China and competition from local brands
CNBC Television· 2025-07-30 18:30
China Market - The company sees an opportunity for tens of thousands more stores in China [1] - The brand has high regard in China, with tremendous opportunity to grow new stores and organically within existing stores [1] - The company created the coffee category in China and now needs to figure out how to compete and continue to grow that category [3] - The company is finding the right partner for its China businesses [1] US Market - The company's big point of difference in the US is the cafe experience [3] - The company needs to continue to give great access for mobile order, drive-thru, and the in-cafe experience [3] - Customer service and connection between barista and customer are rewarded with more business and brand esteem [4] Financial Performance - Comps were up 2%, driven by 6 points of transaction growth in the most recent quarter [2]
Starbucks CEO Brian Niccol: The company had been 'mismanaged for a couple of years'
CNBC Television· 2025-07-30 17:30
People may not remember the turnaround, legendary turnaround that York traded at Chipotle. Where are you versus Chipotle. I know that's tough comparisons to Odius, but what a turn that was.You see anything coming like that here. You know, look, here's what what I believe is uh I'm happy to say we're definitely ahead of schedule on fixing the operational uh foundation. That's what gave us the confidence to go ahead and put it into all stores this year.And uh you know my experiences have been over and over ag ...
Starbucks COO on why hospitality is the answer to the company's challenges
CNBC Television· 2025-07-30 16:30
Given all of the value offerings right now across the restaurant sector, quite frankly, uh, within coffee, Lucken is now offering $2 ice coffees and lattes. Why is hospitality the answer to the challenges that Starbucks is facing right now. Look, we have 7,700 drive-throughs in America.We've got a a digital business, which is 31% which is doing really healthy. We we have the third place. We going to get ready to go into Uplifts, which will start to remodel and bring the comfort back into the experience.That ...
Could China's Luckin coffee threaten Starbucks in the U.S.?
CNBC Television· 2025-07-30 16:00
How should we think about the emergence of Lucken and its emergence here in the US. >> Well, what's interesting about Luck, you only have a couple of stores open so far in New York, right. What's interesting about it is that is primarily a mobile pickup based concept, right.It's distinct from Starbucks, which is telling you sort of coming into stores that employee connection is is still important. Lucken doesn't necessarily have that, right. So, I think our view would be that that isn't a broader threat to ...
Starbucks Q3 Earnings Miss Estimates, Revenues Rise Y/Y, Stock Up
ZACKS· 2025-07-30 15:45
Core Insights - Starbucks Corporation (SBUX) reported mixed results for the third quarter of fiscal 2025, with earnings per share (EPS) missing estimates while net revenues exceeded expectations [1][4] - The company made a one-time investment impacting EPS by 11 cents, and the overall performance reflected progress in its turnaround strategy [1][3] Financial Performance - EPS for the quarter was 50 cents, missing the Zacks Consensus Estimate of 65 cents by 23.1%, and down 46.2% from 93 cents in the prior-year quarter [4] - Net revenues reached $9.46 billion, beating the consensus mark of $9.3 billion by 1.7%, and increased 3.8% from $9.11 billion in the prior-year quarter [4] - Global comparable store sales declined 2% year over year, with a 2% decrease in comparable transactions partially offset by a 1% increase in average tickets [5] Segment Analysis - North America segment net revenues were $6.93 billion, up 2% year over year, with comparable store sales also declining 2% [7] - International segment net revenues increased 9% year over year to $2.01 billion, with comparable store sales at breakeven compared to a 7% decline in the prior-year quarter [8] - Channel Development segment net revenues rose 10% year over year to $483.8 million, driven by contributions to the Global Coffee Alliance [10] Margin and Cost Analysis - Non-GAAP operating margin contracted 660 basis points to 10.1% year over year, primarily due to investments in the "Back to Starbucks" initiative and inflation [6] - Operating margin in North America fell 770 basis points to 13.3%, while the International segment's margin contracted 200 basis points to 13.6% [8][9] - The Channel Development segment's operating margin decreased 860 basis points to 45.1% due to higher global product costs [11] Cash and Dividend Information - As of the end of the fiscal third quarter, the company had cash and cash equivalents of $4.17 billion, up from $3.29 billion at the end of fiscal 2024 [12] - Management declared a quarterly cash dividend of 61 cents per share, payable on August 29, 2025 [13]
Starbucks COO on what 'Green Apron Service' means
CNBC Television· 2025-07-30 15:30
What is a Green Apron moment in an ideal world. What do those interactions look like. It's when you walk through that door, you're greeted with a smile. You're greeted again at the handoff with a perfect cup of coffee, whatever beverage you decide to order, and you're met with that connection.And the idea behind it is that it it's the human element that we all crave. It doesn't have to be overbearing, over the top, but it's a simple hello, the thank you, make a moment, right. If it wasn't right, very basic ...
Newmark Arranges $435 Million Refinancing for Iconic Starbucks Center Headquarters in Seattle's SoDo District
Prnewswire· 2025-07-30 15:12
SEATTLE, July 30, 2025 /PRNewswire/ -- Newmark Group, Inc. (Nasdaq: NMRK) ("Newmark" or "the Company"), a leading commercial real estate advisor and service provider to large institutional investors, global corporations, and other owners and occupiers, announces the Company has arranged a $435 million refinancing on behalf of Nitze-Stagen & Co., Inc. and Daniels Real Estate for Starbucks Center, a landmark office property prominently located at 2401 Utah Avenue South in Seattle's SoDo District. The financin ...
Starbucks CEO Brian Niccol on Green Apron service rollout
CNBC Television· 2025-07-30 15:01
You've heard us talk about this uh right as I started in this job about 10 months ago. We wanted to get back to winning the morning day part and then we wanted to make sure we were staffed correctly throughout the balance of the day. So what you'll see with the Green Apron service model is we're reducing the number of hours where we have minimum staffing and then we're making sure that we have the right number of partners in the right position at the right times.Uh so specifically during peak that means you ...
Starbucks CEO: 'Choices made before me really set us back'
Yahoo Finance· 2025-07-30 14:44
All right, to tell two stories for Starbucks in the wake of its latest earnings report. One of those stories is a coffee giant still battling through the early stages of a turnaround and sales and profits being under pressure in the process. The other story are signs that actions put into place to turn the business around are slowly starting to work.Joining me now is the leader pulling the levers on all those actions, Starbucks chairman and CEO Brian Nickel. Brian, always nice to see uh see you and get some ...
Starbucks COO on coffee pickup in 'four minutes or less'
CNBC Television· 2025-07-30 14:30
Part of the back to Starbucks plan under Brian Nickel is to get you that customized drink in four minutes or less from the cafe. Will this make that happen. Will it speed things up.Well, there are elements right now we're already well under that. Our drive-through times are uh south of 330 320 I think last quarter, which is terrific. Um our digital business, which is now 31% of our overall business, uh which is healthy and strong is the real area that we're going after there.And then the cafe business as we ...