Hua Er Jie Jian Wen·2025-07-29 22:14Core Insights - Starbucks reported third-quarter earnings that fell short of market expectations, with same-store sales and profits declining, yet the CEO highlighted progress in the company's revitalization plan and growth in the Chinese market for the first time in 2023, leading to a post-market stock price increase of 4.6% [2][6]. Financial Performance - Revenue for the third quarter was $9.5 billion, exceeding analyst expectations of $9.31 billion [2]. - Same-store sales decreased by 2%, worse than the expected decline of 1.3% [2]. - Net profit for the quarter was $558.3 million, or $0.49 per share, significantly down from $1.05 billion or $0.93 per share in the same period last year [2]. - Adjusted earnings per share were $0.50, below the analyst forecast of $0.65 [2]. Market and Operational Developments - Despite the decline in same-store sales globally for six consecutive quarters, the Chinese market showed signs of recovery with a 2% increase in same-store sales and a 6% rise in transaction volume [7]. - The CEO mentioned that the company has reduced store construction costs by 30% and is implementing new projects to enhance customer service and sales [6][8]. - The company is focusing on improving the customer experience by increasing staff and prioritizing in-store and drive-thru orders [6]. Future Outlook and Strategic Initiatives - Starbucks plans to invest $500 million in human resources for U.S. company-operated stores over the next year [8]. - The company is adopting a cautious approach for the remainder of the fiscal year due to uncertainties in the consumer market [8]. - Looking ahead to fiscal 2026, Starbucks intends to launch several new products and services, including a revamped app and a refreshed loyalty program [8].