Starbucks Corp
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.88%.
Did SBUX Beat Earnings? Q2 2025 Results
Starbucks delivered a disappointing second quarter for fiscal 2025, missing on both the top and bottom lines as the costs of its sweeping "Back to Starbucks" turnaround weighed heavily on results. The company posted non-GAAP EPS of $0.41, falling 15.24% short of the $0.48 consensus estimate, while revenue of $8.76 billion rose 2.3% year-over-year but came in 0.82% below expectations. The primary culprit was a deliberate and aggressive reinvestment in labor and store operations under CEO Brian Niccol, which compressed non-GAAP operating margin by 460 basis points to just 8.2% and pushed GAAP operating income down 45% to $601 million. Global comparable store sales slipped 1%, with North American transaction volumes falling 4% even as higher average ticket partially cushioned the blow. Against a broader backdrop of softening consumer traffic pressuring the quick-service restaurant industry, Niccol maintained that early turnaround signals validate the strategy, with the company framing its disciplined investments as the foundation for durable long-term growth, though no specific fiscal 2025 financial guidance was issued.
- Net new company-operated store growth of 5% over 12 months in North America
- 3% increase in average ticket in North America offset by 4% decline in transactions
- International comparable store sales increased 2% driven by 3% transaction growth
- China transactions up 4% though offset by 4% ticket decline
- Global ready-to-drink revenue increased within Channel Development
- Acquisition of a U.K. licensed business partner contributed to International revenue growth
“My optimism has turned into confidence that our 'Back to Starbucks' plan is the right strategy to turn the business around and to unlock opportunities ahead.”
Starbucks CEO, on the earnings call
Forward Guidance & Outlook
Starbucks did not provide specific financial guidance for fiscal year 2025 in this release, but CEO Brian Niccol expressed growing confidence in the 'Back to Starbucks' turnaround plan, stating he sees more opportunity than initially imagined. CFO Cathy Smith noted the company is developing capabilities to test, iterate, and scale quickly in service of long-term durable growth and strong returns on invested capital. The company characterized its disciplined investments as laying the foundation for durable growth.
SBUX YoY Financials
SBUX Revenue by Segment
SBUX Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.