Starbucks(US:SBUX)2025-04-29 20:07Financial Performance - Q2 consolidated net revenues increased by 2% to $8.8 billion, or a 3% increase on a constant currency basis[2] - GAAP earnings per share (EPS) of $0.34 declined by 50% year-over-year, while non-GAAP EPS of $0.41 declined by 40% year-over-year[6] - Net earnings attributable to Starbucks decreased by 50.3% to $384.2 million compared to $772.4 million in the prior year[23] - Operating income fell by 45.3% to $601.0 million from $1,098.9 million in the same quarter last year[23] - For the two quarters ended March 30, 2025, total net revenues were $18,159.4 million, a 1.0% increase from $17,988.3 million in the prior year[24] - Net earnings attributable to Starbucks for the two quarters decreased by 35.2% to $1,165.0 million from $1,796.8 million year-over-year[24] - Operating income in North America decreased by 34.8% to $748.3 million compared to $1,148.3 million in the same quarter last year[25] - Operating income for the International segment decreased by 7.2% to $217.0 million, down from $233.8 million in the same quarter last year[26] - Operating income for Channel Development fell by 10.5% to $193.5 million, down from $216.3 million year-over-year[27] - Total operating expenses for Corporate and Other increased by 12.5% to $570.6 million, up from $507.0 million in the previous year[28] Revenue Breakdown - Global comparable store sales decreased by 1%, with North America down 1% and international sales up 2%[6] - North America segment net revenues increased by 1% to $6.5 billion, driven by a 5% growth in company-operated store count[7] - International segment net revenues rose by 6% to $1.9 billion, supported by an 8% increase in company-operated store count and a 2% increase in comparable store sales[8] - Channel Development segment net revenues declined by 2% to $409 million, primarily due to a decrease in revenue from the Global Coffee Alliance[10] - Total net revenues for the quarter ended March 30, 2025, were $8,761.6 million, a 2.3% increase from $8,563.0 million in the same quarter of 2024[23] - Company-operated stores generated $7,285.0 million in revenues, up 3.3% from $7,052.6 million year-over-year, accounting for 83.1% of total net revenues[23] - Total net revenues for the International segment increased by 6.2% to $1,867.1 million in Q1 2025, compared to $1,757.3 million in Q1 2024[26] - Net revenues for Channel Development decreased by 2.2% to $409.0 million in Q1 2025, compared to $418.2 million in Q1 2024[27] Store Operations - The company opened 213 net new stores in Q2, bringing the total to 40,789 stores globally[6] - The total number of stores increased to 40,789 as of March 30, 2025, up from 38,951 as of March 31, 2024, reflecting a growth of 4%[37] - The company opened 213 new stores in the quarter, while closing 364 stores, resulting in a net decrease of 151 stores[37] Dividends and Cash Flow - The company declared a cash dividend of $0.61 per share, marking 60 consecutive quarters of dividend payouts[17] - Cash dividends declared per share increased to $0.61 from $0.57 in the prior year[23] - The company incurred $1,384.9 million in cash dividends paid, an increase from $1,293.5 million in the prior year[32] - Cash provided by operating activities was $2,364.0 million, down from $2,889.9 million in the previous year[32] - Net cash used in investing activities was $1,499.2 million, compared to $1,264.0 million in the same period last year[32] Operational Efficiency and Strategy - The "Back to Starbucks" strategy is expected to drive long-term growth and improve operational efficiency[4] - Store operating expenses increased by 12.1% to $4,176.0 million, representing 47.7% of total net revenues[23] - Current liabilities increased to $10,429.3 million from $9,070.0 million year-over-year[30] - The company reported a retained deficit of $7,565.5 million as of March 30, 2025, compared to $7,343.8 million in the previous year[30] - Total liabilities rose to $39,248.5 million from $38,780.9 million year-over-year[30] Assets and Financial Position - Total assets as of March 30, 2025, amounted to $31,633.1 million, a slight increase from $31,339.3 million as of September 29, 2024[30]