Hua Er Jie Jian Wen·2025-07-30 13:27Core Viewpoint - Despite a sixth consecutive quarter of declining same-store sales in the U.S., Starbucks shows signs of reform with better-than-expected results, leading the market to adopt a "believe first" approach [2] Financial Performance - Adjusted earnings per share were $0.50, below the market expectation of $0.65, while revenue reached $9.5 billion, a 5% year-over-year increase [2] - U.S. same-store sales fell 2% in Q2, in line with the previous quarter but better than the analyst forecast of a 2.5% decline; comparable transaction volume decreased by 4%, also better than the expected 4.5% drop [2] - China same-store sales continued to grow, with a 2% year-over-year increase, surpassing the expected 1.4% growth [6][7] Market Strategy and Reforms - To reverse the downturn, Starbucks has implemented several reforms in the U.S. market, including layoffs, requiring more employees to return to the office, increasing staffing in stores, and reshaping service models [4] - The new "Green Apron Service" plan is set to launch in mid-August, with pilot stores showing improvements in transaction volume, sales, and service efficiency [4] - Starbucks plans to invest approximately $150,000 per store for small-scale upgrades to create a "comfortable café atmosphere," moving away from the previous fast-casual experience [4] New Store Development - The construction cost for new stores has decreased by about 30%, with a new prototype store featuring 32 seats and a drive-thru set to launch in fiscal year 2026 [5] Product Innovation - Starbucks is shifting its product innovation approach from a top-down model to a co-creation model with store partners, addressing past criticisms of overly complex menus [8] - A new menu featuring protein cold foam drinks and coconut water tea beverages is set to launch in Q4, with a focus on quality and customer engagement [8]