Core Insights - Starbucks reported its Q3 FY2025 earnings, showing revenue exceeding expectations but profits under pressure, with global same-store sales declining for the sixth consecutive quarter [1][2][3] Financial Performance - Q3 core financial data indicates earnings per share (EPS) of $0.50, significantly below the expected $0.65, and net profit of $558 million, down 47% year-over-year from $1.05 billion, impacted by restructuring costs and one-time investments [2] - Revenue reached $9.5 billion, a 4% year-over-year increase, surpassing market expectations of $9.31 billion, indicating resilience in core business [3] Same-Store Sales Analysis - Global same-store sales fell by 2%, worse than the expected decline of 1.3%, marking the sixth consecutive quarter of decline [4] - North America same-store sales decreased by 2%, better than the anticipated decline of 2.5%, with transaction volume down 3% but average ticket price up 1% [4][5] - China achieved a 2% increase in same-store sales, marking its first positive growth in a year and a half, with transaction volume up 6% but average ticket price down 4% [4][9] Market Insights - The U.S. market, which accounts for 70% of Starbucks' revenue, showed improvement with a same-store sales decline of 2%, better than the previous quarter's -4% [5] - Starbucks is focusing on "rebuilding the soul of the store" through initiatives like the "Green Apron Service" and restoring seating in stores, with an additional $500 million planned for labor, training, and service experience upgrades in the U.S. [6] Strategic Outlook - CEO Brian Niccol emphasized the company's commitment to enhancing customer experience and retaining substantial equity in the Chinese market, despite interest from over 20 institutions in acquiring stakes [9] - The company plans to launch new products and revamp its app and membership system by FY2026, with an investor day scheduled for Q2 2026 to disclose further financial targets [11] Market Sentiment - Despite recent downgrades from some analysts, several institutions maintain "buy" or "overweight" ratings, reflecting a growing confidence in the company's transformation efforts [10] - The focus is shifting from short-term financial metrics to long-term recovery potential as the company works on rebuilding brand strength and customer experience [12]