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Starbucks(SBUX) - 2025 Q2 - Quarterly Results
SBUXStarbucks(SBUX)2025-04-29 20:07

Financial Performance - Q2 consolidated net revenues increased by 2% to 8.8billion,ora38.8 billion, or a 3% increase on a constant currency basis[2] - GAAP earnings per share (EPS) of 0.34 declined by 50% year-over-year, while non-GAAP EPS of 0.41declinedby400.41 declined by 40% year-over-year[6] - Net earnings attributable to Starbucks decreased by 50.3% to 384.2 million compared to 772.4millionintheprioryear[23]−Operatingincomefellby45.3772.4 million in the prior year[23] - Operating income fell by 45.3% to 601.0 million from 1,098.9millioninthesamequarterlastyear[23]−ForthetwoquartersendedMarch30,2025,totalnetrevenueswere1,098.9 million in the same quarter last year[23] - For the two quarters ended March 30, 2025, total net revenues were 18,159.4 million, a 1.0% increase from 17,988.3millionintheprioryear[24]−NetearningsattributabletoStarbucksforthetwoquartersdecreasedby35.217,988.3 million in the prior year[24] - Net earnings attributable to Starbucks for the two quarters decreased by 35.2% to 1,165.0 million from 1,796.8millionyear−over−year[24]−OperatingincomeinNorthAmericadecreasedby34.81,796.8 million year-over-year[24] - Operating income in North America decreased by 34.8% to 748.3 million compared to 1,148.3millioninthesamequarterlastyear[25]−OperatingincomefortheInternationalsegmentdecreasedby7.21,148.3 million in the same quarter last year[25] - Operating income for the International segment decreased by 7.2% to 217.0 million, down from 233.8millioninthesamequarterlastyear[26]−OperatingincomeforChannelDevelopmentfellby10.5233.8 million in the same quarter last year[26] - Operating income for Channel Development fell by 10.5% to 193.5 million, down from 216.3millionyear−over−year[27]−TotaloperatingexpensesforCorporateandOtherincreasedby12.5216.3 million year-over-year[27] - Total operating expenses for Corporate and Other increased by 12.5% to 570.6 million, up from 507.0millioninthepreviousyear[28]RevenueBreakdown−Globalcomparablestoresalesdecreasedby1507.0 million in the previous year[28] Revenue Breakdown - Global comparable store sales decreased by 1%, with North America down 1% and international sales up 2%[6] - North America segment net revenues increased by 1% to 6.5 billion, driven by a 5% growth in company-operated store count[7] - International segment net revenues rose by 6% to 1.9billion,supportedbyan81.9 billion, supported by an 8% increase in company-operated store count and a 2% increase in comparable store sales[8] - Channel Development segment net revenues declined by 2% to 409 million, primarily due to a decrease in revenue from the Global Coffee Alliance[10] - Total net revenues for the quarter ended March 30, 2025, were 8,761.6million,a2.38,761.6 million, a 2.3% increase from 8,563.0 million in the same quarter of 2024[23] - Company-operated stores generated 7,285.0millioninrevenues,up3.37,285.0 million in revenues, up 3.3% from 7,052.6 million year-over-year, accounting for 83.1% of total net revenues[23] - Total net revenues for the International segment increased by 6.2% to 1,867.1millioninQ12025,comparedto1,867.1 million in Q1 2025, compared to 1,757.3 million in Q1 2024[26] - Net revenues for Channel Development decreased by 2.2% to 409.0millioninQ12025,comparedto409.0 million in Q1 2025, compared to 418.2 million in Q1 2024[27] Store Operations - The company opened 213 net new stores in Q2, bringing the total to 40,789 stores globally[6] - The total number of stores increased to 40,789 as of March 30, 2025, up from 38,951 as of March 31, 2024, reflecting a growth of 4%[37] - The company opened 213 new stores in the quarter, while closing 364 stores, resulting in a net decrease of 151 stores[37] Dividends and Cash Flow - The company declared a cash dividend of 0.61pershare,marking60consecutivequartersofdividendpayouts[17]−Cashdividendsdeclaredpershareincreasedto0.61 per share, marking 60 consecutive quarters of dividend payouts[17] - Cash dividends declared per share increased to 0.61 from 0.57intheprioryear[23]−Thecompanyincurred0.57 in the prior year[23] - The company incurred 1,384.9 million in cash dividends paid, an increase from 1,293.5millionintheprioryear[32]−Cashprovidedbyoperatingactivitieswas1,293.5 million in the prior year[32] - Cash provided by operating activities was 2,364.0 million, down from 2,889.9millioninthepreviousyear[32]−Netcashusedininvestingactivitieswas2,889.9 million in the previous year[32] - Net cash used in investing activities was 1,499.2 million, compared to 1,264.0millioninthesameperiodlastyear[32]OperationalEfficiencyandStrategy−The"BacktoStarbucks"strategyisexpectedtodrivelong−termgrowthandimproveoperationalefficiency[4]−Storeoperatingexpensesincreasedby12.11,264.0 million in the same period last year[32] Operational Efficiency and Strategy - The "Back to Starbucks" strategy is expected to drive long-term growth and improve operational efficiency[4] - Store operating expenses increased by 12.1% to 4,176.0 million, representing 47.7% of total net revenues[23] - Current liabilities increased to 10,429.3millionfrom10,429.3 million from 9,070.0 million year-over-year[30] - The company reported a retained deficit of 7,565.5millionasofMarch30,2025,comparedto7,565.5 million as of March 30, 2025, compared to 7,343.8 million in the previous year[30] - Total liabilities rose to 39,248.5millionfrom39,248.5 million from 38,780.9 million year-over-year[30] Assets and Financial Position - Total assets as of March 30, 2025, amounted to 31,633.1million,aslightincreasefrom31,633.1 million, a slight increase from 31,339.3 million as of September 29, 2024[30]