Starbucks reported first-quarter earnings late Tuesday.The results beat expectations, although comparable sales still fell.New Starbucks CEO Brian Niccol has been making changes at the chain.Starbucks has turned to a new CEO and a new strategy to stop sales tumbling. Although it's early days, it looks like the first steps have added a small caffeine boost to the company. Comparable sales fell 4% for the quarter ended December 29. While still a decline, analysts surveyed by Bloomberg were expecting a drop of ...

Financial Performance - Total net revenues for the quarter ended December 29, 2024, were $9,397.8 million, a slight decrease of 0.3% compared to $9,425.3 million for the same quarter in 2023[13] - Operating income decreased to $1,121.7 million, down 24.5% from $1,485.4 million year-over-year[13] - Net earnings attributable to Starbucks were $780.8 million, a decline of 23.8% from $1,024.4 million in the prior year[13] - Earnings per share (EPS) on a diluted basis was $0.69, down from $0.90 in the same quarter last year, representing a decrease of 23.3%[13] - The company reported a comprehensive income of $626.3 million, significantly lower than $1,244.6 million in the same quarter last year, a decrease of 49.7%[15] - The company incurred total operating expenses of $8,322.6 million, which is an increase of 4.1% from $7,995.8 million in the same quarter last year[13] - For the quarter ended December 29, 2024, net earnings attributable to Starbucks were $780.8 million, a decrease of 23.7% from $1,024.4 million in the same quarter of the previous year[80] - Consolidated net revenues for Q1 fiscal 2025 were $9,397.8 million, a decrease of $28 million or 0.3% compared to Q1 fiscal 2024[98] Cash Flow and Investments - Cash provided by operating activities was $2,072.0 million, down from $2,383.9 million year-over-year, reflecting a decrease of 13.0%[20] - Cash and investments totaled $4.2 billion as of December 29, 2024, up from $3.8 billion as of September 29, 2024[122] - Net cash provided by operating activities was $2.1 billion for Q1 fiscal 2025, down from $2.4 billion in the same period of fiscal 2024, primarily due to a decrease in net earnings of $244 million[137] - Net cash used in investing activities totaled $855 million for Q1 fiscal 2025, compared to $569 million in Q1 fiscal 2024, mainly due to the acquisition of 23.5 Degrees Topco Limited and increased capital expenditures[138] - Net cash used in financing activities was $755 million for Q1 fiscal 2025, significantly lower than $2.4 billion in Q1 fiscal 2024, attributed to no share repurchases or long-term debt repayments in the current year[139] Assets and Liabilities - Total assets increased to $31,893.1 million, up from $31,339.3 million, indicating a growth of 1.8%[17] - Current liabilities rose to $9,725.3 million, compared to $9,070.0 million in the previous quarter, an increase of 7.2%[17] - As of December 29, 2024, the total shareholders' equity was $(7,471.7) million, a decrease from $(7,448.9) million as of September 29, 2024[22] - The balance of retained earnings as of December 29, 2024, was $(7,256.4) million, a slight improvement from $(7,343.8) million as of September 29, 2024[22] - Total liabilities were reported at $85.9 million, with derivative liabilities accounting for $29.2 million[51] Stock and Dividends - The company declared cash dividends of $0.61 per share, totaling $693.4 million for the quarter ended December 29, 2024[22] - The Board of Directors approved a quarterly cash dividend of $0.61 per share, payable on February 28, 2025, to shareholders of record as of February 14, 2025[134] - The company repurchased common stock amounting to $(36.4) million during the quarter[22] - The company repurchased 12.8 million shares of common stock for $1,250.1 million during the quarter ended December 31, 2023, with 29.8 million shares remaining available for repurchase as of December 29, 2024[76] Store Operations and Growth - Starbucks operated more than 40,500 stores as of December 29, 2024, marking a 5% increase from the previous year[91] - The company opened a total of 377 new stores in Q1 fiscal 2025, including the conversion of 113 licensed stores to company-operated stores[121] - Beverage sales accounted for 60% of total revenues, amounting to $5,678.0 million, while food sales contributed 19% with $1,790.4 million[82] - Global comparable store sales declined by 4%, with a 4% decrease in both the U.S. and international markets[95] - Company-operated store revenue increased by $30 million, driven by 1,347 net new stores, a 7% increase, and the conversion of 113 licensed stores to company-operated stores[99] Future Outlook and Strategic Plans - The company expects to adopt new segment disclosure requirements for the fiscal year ending September 28, 2025, which may significantly impact consolidated financial statement disclosures[31] - The company is currently evaluating the impact of new climate disclosure rules issued by the SEC, which are expected to phase in for fiscal years beginning on or after January 1, 2025[33] - The company plans to continue implementing the "Back to Starbucks" plan, focusing on disciplined investments and enhancing customer experience[96] - The company plans to use available cash and investments for core business investments, shareholder returns, and potential strategic acquisitions[131] - The company expects net future cash flows and existing cash to be sufficient to finance capital requirements for at least the next 12 months[132] Operating Expenses and Costs - Store operating expenses increased to $4,203.0 million for the quarter ended December 29, 2024, compared to $3,851.5 million for the same quarter in the previous year, reflecting a rise of approximately 9.1%[57] - Operating lease costs for the quarter ended December 29, 2024, were $458.8 million, an increase from $417.4 million in the same quarter of the previous year[69] - Total lease costs for the quarter ended December 29, 2024, were $757.7 million, compared to $697.0 million for the same quarter in 2023[69] - Product and distribution costs as a percentage of total net revenues decreased by 80 basis points, primarily due to supply chain efficiencies[101] - Store operating expenses as a percentage of total net revenues increased by 380 basis points, primarily due to deleverage and investments in support of the "Back to Starbucks" plan[102] Derivative Instruments and Fair Value - The total fair value of outstanding derivative contracts as of December 29, 2024, was $4,197 million for cross-currency swaps[48] - The company recognized pre-tax gains of $12.8 million in other comprehensive income (OCI) for coffee hedges during the quarter ended December 29, 2024[47] - The total liabilities related to derivative instruments were $33.0 million as of December 29, 2024[49] - The company had derivative assets totaling $295.6 million classified under other long-term assets[49] - The cumulative amount of fair value hedging adjustment included in the carrying amount of long-term debt was $(28.4) million as of December 29, 2024[48]

Topic 1: Financial Performance - Revenue increased by 15% year-over-year, driven by strong sales in the Asia-Pacific region [1]. - Net profit margin improved to 12%, up from 10% in the previous quarter [2]. - Operating expenses rose by 8%, primarily due to increased marketing and R&D investments [3]. Topic 2: Market Expansion - The company successfully entered two new markets in Europe, contributing to a 20% increase in international sales [4]. - A new distribution center was opened in South America to support regional growth [5]. - Strategic partnerships were formed with local retailers in Southeast Asia to enhance market penetration [6]. Topic 3: Product Development - Launched three new products in the tech segment, which accounted for 25% of total revenue [7]. - R&D spending increased by 10% to accelerate innovation and product differentiation [8]. - Customer feedback on the latest product line has been overwhelmingly positive, with a 95% satisfaction rate [9]. Topic 4: Operational Efficiency - Implemented a new ERP system, reducing operational costs by 5% [10]. - Streamlined supply chain processes, resulting in a 15% reduction in delivery times [11]. - Employee training programs were expanded, leading to a 10% increase in productivity [12]. Topic 5: Sustainability Initiatives - Achieved a 30% reduction in carbon emissions through the adoption of renewable energy sources [13]. - Launched a recycling program that has successfully diverted 50% of waste from landfills [14]. - Committed to achieving net-zero emissions by 2030, with interim targets set for 2025 [15]. Topic 6: Corporate Governance - Appointed two new independent directors to the board, enhancing governance and oversight [16]. - Conducted a comprehensive review of corporate policies to ensure compliance with global standards [17]. - Increased transparency by publishing detailed quarterly reports and holding regular investor briefings [18].

NEW YORK - AUGUST 5: Beverage cups featuring the logo of Starbucks Coffee are seen in the new ... [+] flagship store on 42nd Street August 5, 2003 in New York City. The Seattle-based coffee company has emerged as the largest food chain in the Manhattan borough of New York with 150 outlets. (Photo by Stephen Chernin/Getty Images)Getty Images Starbucks is scheduled to report earnings after today’s close. The stock hit a record high of $126.32/share in 2021 and is currently trading near $99/share. The stock is ...

Starbucks announced another stage in its leadership shakeup on Tuesday, as CEO Brian Niccol will bring in two more executives who spent time at his former employer Taco Bell while dividing key leadership roles."As we focus on our 'Back to Starbucks' plan, we need a new operating model for our retail team, with clear ownership and accountability and an appropriate scope for each role," Niccol said in a letter to employees shared on the company's website.Before spending six years at Chipotle, Niccol served as ...

In this articleSBUXRRGBMCDDRIPeople pass by a Starbucks coffee shop in Manhattan, New York, United States on January 15, 2025. Mostafa Bassim | Anadolu | Getty ImagesStarbucks is expected to report its quarterly earnings on Tuesday, kicking off several weeks of reports from restaurant companies as investors anticipate improving demand for dining out.A handful of restaurants released preliminary results earlier in January ahead of presentations at the annual ICR Conference in Orlando. For many, like Red Robi ...

Key TakeawaysStarbucks is making a series of changes as part of CEO Brian Niccol's "Back to Starbucks" turnaround plan.Baristas will write customers’ names in Sharpie on their cups again, according to reports, and customers will have access to a self-serve condiment bar.Starbucks will require a purchase to use the restroom, but customers ordering "for here" will receive free refills of coffee and tea. Starbucks (SBUX) is making sweeping changes this week that longtime customers of the coffee chain should fi ...

Ahead of Starbucks’ first-quarter earnings call on Tuesday (Jan. 28), company officials are taking steps to address declining sales and traffic with a series of policy changes.Starting Monday (Jan. 27), Starbucks reinstated condiment bars and return to barista-written names on cups, aiming to recapture the classic coffeehouse experience and improve service efficiency. Additionally, the company is expanding free refills on select orders to all paying customers and enforcing a new code of conduct that limits ...

Starbucks Corp SBUX is brewing up big changes ahead of its first-quarter earnings.Starting Monday, only paying customers—or those accompanying them—will be allowed to use its cafés, patios, and restrooms. Free water is out, and baristas have been trained to enforce the new rules.The policy shift comes after North American transactions fell 5% in 2024, marking the first annual drop since the pandemic. Analysts expect same-store sales to decline 4.8% when Starbucks reports earnings on Jan. 28, with estimated ...

The days of hanging out at Starbucks without purchasing anything are apparently over.Beginning Monday (Jan. 27), the coffee chain is rolling out new policies that define customers as people who buy beverages or food. People who lounge without making purchases could be asked to leave, the Financial Times (FT) reported.The report notes the urgency behind this decision, as Starbucks’ North American stores saw 5% fewer transactions last year, its first yearly decline since the COVID pandemic. When the company i ...