Xin Lang Cai Jing·2025-07-29 23:55Core Viewpoint - Starbucks is experiencing a turnaround under CEO Brian Niccol, with a focus on reversing long-term sales declines and implementing a transformation plan that has shown early positive results, particularly in the Chinese market [1][2]. Financial Performance - For Q3 FY2025, Starbucks reported a revenue increase of 3.8% year-over-year to $9.456 billion, exceeding market expectations of $9.31 billion [1]. - Adjusted earnings per share were $0.50, a 46% decline year-over-year, falling short of the expected $0.65 [1]. - Same-store sales decreased by 2%, worse than the anticipated decline of 1.5%, marking the sixth consecutive quarter of decline [2]. Market Performance - U.S. same-store sales fell by 2%, aligning closely with the market expectation of a 2.53% decline, while China saw a 2% increase in same-store sales, the first growth in a year and a half, surpassing the expected 1.44% [1][2]. Strategic Initiatives - Niccol's strategy includes reducing wait times, updating the menu, and renovating stores to enhance the customer experience in the U.S. market [2]. - The company has cut store construction costs by 30% and is focusing on improving service speed and customer experience through increased staffing and prioritizing dine-in and drive-through orders [2]. Operational Insights - Starbucks is facing challenges with its operating profit margin due to expenses related to the transformation plan and inflationary pressures [3]. - The company plans to invest an additional $500 million in labor costs for U.S. company-operated stores over the next year [3]. - CFO Cathy Smith expressed a cautious outlook for the remainder of the fiscal year, acknowledging improvements in transaction volumes but uncertainty about their ultimate levels [3].