Starbucks Q2 Earnings Disappoint: ETFs in Focus

Core Insights - Starbucks reported disappointing second-quarter fiscal 2025 results, leading to a 9.6% decline in stock price before market open on April 30, although it has since recovered by approximately 6.6% as of May 1 [1][3] Financial Performance - Adjusted earnings per share decreased by 39.7% year over year, from $0.68 to $0.41, missing the Zacks Consensus Estimate of $0.49 by 16.3% [3] - Total revenue increased by 2.3% year over year to $8.76 billion, but fell short of the Zacks Consensus Estimate of $8.79 billion [3] - Global comparable store sales declined by 1% year over year, driven by a 2% decrease in comparable transactions, partially offset by a 1% increase in average tickets [4] Operational Highlights - The company opened 213 net new stores, bringing the total store count to 40,789 [4] - Non-GAAP operating margin contracted by 4.60% to 8.2% due to deleverage and increased labor costs associated with the "Back to Starbucks" initiative [4] Segment Performance - North America segment net revenues were $6.47 billion, up 1% year over year, but operating margin contracted by 6.4% to 11.6% [5] - International segment net revenues increased by 6% year over year to $1.87 billion, with operating margin contracting by 1.7% to 11.6% [5] Strategic Initiatives - CEO Brian Niccol expressed optimism regarding the "Back to Starbucks" plan, which focuses on enhancing atmosphere, improving throughput, and boosting customer satisfaction through increased staffing and digital engagement [2]