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Dec 29, 2024

Starbucks Q1 2025 Earnings Report

Starbucks' Q1 2025 results reflected early progress on the 'Back to Starbucks' strategy, with a focus on re-introducing Starbucks to the world.

Key Takeaways

Starbucks reported Q1 fiscal year 2025 results, showing flat consolidated net revenues of $9.4 billion compared to the prior year. EPS declined to $0.69, reflecting investments in the 'Back to Starbucks' strategy. Global comparable store sales decreased by 4%, driven by a decline in comparable transactions.

Global comparable store sales declined 4%, driven by a 6% decline in comparable transactions, partially offset by a 3% increase in average ticket.

North America and U.S. comparable store sales declined 4%, driven by an 8% decline in comparable transactions, partially offset by a 4% increase in average ticket.

International comparable store sales declined 4%, driven by a 2% decline in both average ticket and comparable transactions; China comparable store sales declined 6%, driven by a 4% decline in average ticket and a 2% decline in comparable transactions.

The company opened 377 net new stores in Q1, ending the period with 40,576 stores: 53% company-operated and 47% licensed.

Total Revenue
$9.4B
Previous year: $9.43B
-0.3%
EPS
$0.69
Previous year: $0.9
-23.3%
Total Global Stores
40.58K
Gross Profit
$2.3B
Previous year: $2.59B
-11.3%
Cash and Equivalents
$3.67B
Previous year: $3.38B
+8.5%
Free Cash Flow
$1.38B
Previous year: $1.79B
-22.9%
Total Assets
$31.9B
Previous year: $29.2B
+9.3%

Starbucks

Starbucks

Starbucks Revenue by Segment

Starbucks Revenue by Geographic Location

Forward Guidance

Starbucks is focused on its 'Back to Starbucks' strategy and shareholder value through dividends.

Positive Outlook

  • Moving quickly to act on the 'Back to Starbucks' efforts.
  • Seeing a positive response to the 'Back to Starbucks' efforts.
  • Demonstrated the effectiveness of the 'Back to Starbucks' strategy.
  • Prioritizing shareholder value through dividends.
  • Providing a predictable return of capital while we turn around our business.

Revenue & Expenses

Visualization of income flow from segment revenue to net income