SBUX Q4 Earnings Sees First Global Comp Growth in Seven Quarters

Core Insights - Starbucks Corporation (SBUX) reported its first global comparable store sales growth in seven quarters, indicating a significant turnaround in its fiscal fourth-quarter 2025 performance [1] - The company's revenues increased by 5% year over year to $9.6 billion, although earnings per share of 52 cents fell short of the Zacks Consensus Estimate of 55 cents due to ongoing strategic investments [1][10] Sales Performance - Global comparable sales rose by 1%, driven by a 3% increase internationally, while North America showed signs of recovery [2][10] - U.S. comparable sales were flat, but transaction trends improved sequentially, suggesting that the "Back to Starbucks" strategy is gaining traction [2] International Markets - International markets demonstrated resilience, with China achieving 2% comparable sales growth supported by a 9% increase in transactions [3] - Other markets such as Japan, the United Kingdom, and Mexico also reported positive sales momentum [3] Strategic Initiatives - The Green Apron Service initiative has enhanced staffing, customer connection, and service speed, leading to improved partner engagement and customer satisfaction [2] - The delivery channel experienced a nearly 30% year-over-year surge, surpassing $1 billion in U.S. sales for the fiscal year [3] Management Focus - Management emphasized a commitment to enhancing the coffeehouse experience over short-term profit gains, with CEO Brian Niccol noting that investments in service and store redesign are yielding tangible results [4] - CFO Cathy Smith indicated that cost streamlining and disciplined capital allocation are expected to gradually improve margins in fiscal 2026 [4][10] Overall Outlook - The fourth-quarter results reflect early signs of recovery, combining operational discipline, brand renewal, and customer-centric innovation to set the stage for sustainable long-term growth [5]