Sou Hu Cai Jing·2025-08-05 10:41Core Viewpoint - Starbucks' Q3 FY2025 financial report reveals a contrasting performance with "global pressure and recovery in China," highlighting a significant drop in global net profit while showing growth in the Chinese market [3][11]. Financial Performance - Starbucks China reported revenue of $790 million, a year-on-year increase of 8%, while global net profit plummeted by 47.1% to $560 million [3][11]. - Same-store sales in China grew by 2%, marking the first increase in a year and a half, driven by a 6% increase in transaction volume, although the average ticket price decreased by 4% [4][7]. Strategic Adjustments - The growth in same-store sales is attributed to product innovation and marketing activities, including the launch of the "True Taste Sugar-Free" system [7][17]. - Starbucks has implemented price adjustments on non-coffee products, reducing prices by 2-6 yuan, to attract a broader customer base and enhance consumption during off-peak hours [16][17]. Market Competition - The competitive landscape in China's coffee market is intensifying, with local brands like Luckin Coffee and others gaining market share, leading to a decline in Starbucks' market share from 34% in 2019 to 14% in 2024 [12][13]. - Luckin Coffee reported a net revenue of 12.36 billion yuan, a year-on-year increase of 47.1%, and a total of 26,117 stores, significantly outpacing Starbucks [12]. Store Expansion - Starbucks China has expanded its store count to 7,828, with a net increase of 522 stores compared to Q3 FY2024, and opened 70 new stores during the reporting period [8][9]. - New stores have maintained high profitability levels, contributing above-average same-store sales growth [10]. Ownership and Investment Interest - Starbucks has acknowledged interest from over 20 parties regarding potential equity acquisition in its China operations, with a valuation of up to $10 billion [21][22]. - The company aims to retain a significant portion of its equity in China, with any transaction needing to align with its interests [22][23].