Starbucks(US:SBUX)2025-10-29 20:08Financial 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]