Q2 2025 Starbucks Corp Earnings Call Transcript
Key Points
- Starbucks Corp (SBUX) reported a total company revenue of $8.8 billion with a global net new store growth of 213 coffeehouses.
- The company has launched a new Green Apron service model to improve peak throughput and customer experience, which will be scaled to more than 2,000 US locations by the end of the fiscal year.
- Starbucks Corp (SBUX) has seen early indicators of recovery in its North America business, with partner engagement up and turnover dropping to a new recorded low.
- The Canadian business has returned to positive comps with positive transaction growth, indicating a successful turnaround in that market.
- The company is focusing on brand and coffee storytelling, with a new US brand campaign that generated record-breaking customer engagement and drove the second highest Monday gross sales day ever.
- Starbucks Corp (SBUX) reported a global comparable store sales decline of 1% and a global operating margin of 8.2%, which are below expectations.
- Earnings per share (EPS) for the quarter were $0.41, down 38% from the prior year, reflecting expense deleverage and heightened investments.
- The US market experienced a 2% decline in comparable store sales, with transaction declines improving but still at negative 4%.
- The company's Q2 consolidated operating margin contracted by 450 basis points from the prior year, primarily due to additional labor costs.
- Starbucks Corp (SBUX) is facing challenges in China, with comparable store sales flat for the quarter, although there are signs of progress with positive transactions and expanding margins.
(video playing) Good afternoon, my name is Diego and I will be your conference operator today. I would like to welcome everyone to Starbucks second quarter fiscal year 2025 conference call.
(Operator Instructions) I will now turn the call over to Tiffany Willis, Senior Vice President of Investor Relations. Ms. Willis, you may now begin your conference.
Good afternoon and thank you for joining us today to discuss Starbucks second quarter fiscal year 2025 results. Today's discussion will be led by Brian Niccol, Chairman and Chief Executive Officer and Cathy Smith, Executive Vice President and Chief Financial Officer.
This conference call will include forward looking statements, which are subject to various risks and uncertainties that could cause our actual results to differ from these statements. Any such statement should be considered in conjunction with cautionary statements and our earnings release and risk factors discussed in our filings with the SEC, including our
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