Core Insights - Starbucks reported a decline in global same-store sales for the sixth consecutive quarter, with a 2% decrease in same-store sales globally [1][3] - The company is implementing the "Green Apron Service" model to standardize transaction processes and improve sales and customer service times, with plans to roll it out to all U.S. company-operated stores by mid-August [1][2] - Despite a 4% increase in overall sales to $9.5 billion, adjusted earnings per share (EPS) fell by 46% to $0.50, missing analyst expectations [3][7] Financial Performance - Global same-store sales decreased by 2%, with North America also seeing a 2% decline in same-store sales and a 3% drop in customer traffic [3] - In China, same-store sales grew by 2%, with a 6% increase in customer traffic, although average spending per customer fell by 4% [3] - Adjusted operating margin dropped by 660 basis points to 10.1%, with store operating expenses rising by 13.5% to account for 45.9% of sales [2][3] Strategic Initiatives - Starbucks is investing approximately $150,000 per store for renovations and plans to increase labor costs by $500 million annually to enhance customer experience [2][6] - The company is also upgrading its mobile app and ordering systems, and introducing new products to attract more customers [1][2] Analyst Ratings and Price Targets - Stifel maintains a "Buy" rating with a target price of $105, highlighting progress in the "Return to Starbucks" revitalization plan [6][7] - JPMorgan and Wells Fargo have also raised their target prices to $105, maintaining "Overweight" ratings [7] - Analysts have mixed views on the stock's valuation, with some cautioning against its high price-to-earnings ratio of approximately 32 times projected earnings for fiscal year 2026 [7][8]