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Mar 30, 2025
Starbucks Q2 2025 Earnings Report
Starbucks reported mixed Q2 2025 results with modest revenue growth but declining profitability.
Key Takeaways
Starbucks posted a 2% increase in consolidated net revenues to $8.8 billion, but GAAP operating margin contracted 590 basis points to 6.9%. Global comparable store sales declined 1%, with North America down 1% and International up 2%. The company opened 213 net new stores, ending the quarter with 40,789 stores globally.
Consolidated net revenues increased 2% to $8.8 billion, with 3% growth on a constant currency basis.
GAAP operating margin contracted 590 basis points to 6.9%, driven by deleverage and additional labor costs.
Global comparable store sales declined 1%, with North America down 1% and International up 2%.
The company opened 213 net new stores, ending the quarter with 40,789 stores globally.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Starbucks remains focused on its 'Back to Starbucks' turnaround strategy, aiming to improve transaction comps and build long-term growth.
Positive Outlook
- Early progress on 'Back to Starbucks' strategy showing promise.
- International comparable store sales growth of 2%.
- Continued store expansion with 213 net new stores opened.
- Strong brand loyalty and customer engagement.
- Commitment to long-term, durable growth and strong returns.
Challenges Ahead
- Declining profitability with GAAP operating margin down 590 bps.
- North America comparable store sales declined 1%.
- Higher labor and restructuring costs impacting margins.
- Macroeconomic uncertainty affecting consumer spending.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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