Q4 2025 Starbucks Corp Earnings Call Transcript
Key Points
- Starbucks Corp (SBUX) reported a 5% increase in global revenue and a 1% growth in global comparable store sales for the fourth quarter, marking the first positive quarter in seven quarters.
- The company successfully implemented the Green Apron Service standard across its US company-operated portfolio, resulting in improved customer experience scores and record low hourly partner turnover.
- Starbucks Corp (SBUX) saw a 30% year-over-year growth in its US delivery business, surpassing $1 billion in sales for the fiscal year.
- The International segment achieved record revenues of $2.1 billion in the fourth quarter, with strong performance in key markets such as China, Japan, the UK, and Mexico.
- The company introduced new menu innovations, including protein cold foam and protein lattes, which have been well-received and are driving stronger customer perception scores and market share growth in the US.
- US company-operated transaction comps were down 1% year over year, although there was sequential improvement.
- Consolidated operating margin contracted by 500 basis points from the prior year, primarily due to inflation and investments in labor hours.
- Starbucks Corp (SBUX) closed 107 net stores globally as part of a restructuring effort, which may impact baseline North America company-operated revenues.
- Coffee prices and tariffs continue to be a headwind, affecting the company's cost structure.
- The company is still in the early stages of its turnaround, with earnings expected to lag behind top-line growth as investments in the Back to Starbucks strategy continue.
Good afternoon. My name is Diego, and I will be your conference operator today. I would like to welcome everyone to Starbucks' fourth-quarter fiscal year 2025 conference call. (Operator Instructions)
I will now turn the call over to Catherine Park, Vice President of Investor Relations. Ms. Park, you may now begin your conference.
Good afternoon, and thank you for joining us today to discuss Starbucks' fourth-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 statements should be considered in conjunction with cautionary statements in our earnings release and risk factors discussed in our filings with the SEC, including our latest annual report on
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