Starbucks has released its financial results for its 13-week fiscal second quarter ended 30 March 2025.
The results follow the company’s Back to Starbucks strategy that aims to return Starbucks to its former financial results. The strategy is said to have aided the turnaround in revenue, with a two per cent rise (US$8 billion) in Q2 consolidated net revenue.
The GAAP (Generally Accepted Accounting Principles) results in fiscal 2025 include items that are excluded from non-GAAP results. In Q2, Starbucks saw global comparable store sales decline one per cent, driven by a two per cent decline in comparable transactions, partially offset by a 1 per cent increase in average ticket.
The company opened 213 net new stores in the quarter, ending the period with 40,789 stores: 53 per cent company-operated and 47 per cent licensed.
At the end of Q2, stores in the United States and China comprised 61 per cent of the company’s global portfolio, with 17,122 and 7,758 stores in each country respectively.
Consolidated net revenues increased two per cent to $8.8 billion, or a three per cent increase on a constant currency basis.
GAAP operating margin contracted 590 basis points year-over-year to 6.9 per cent, primarily driven by deleverage and additional labour in support of Back to Starbucks. Also contributing were restructuring costs related to simplifying the Starbucks global support organisation.
“My optimism has turned into confidence that our Back to Starbucks plan is the right strategy to turn the business around and to unlock opportunities ahead,” says Brian Niccol, Chairman and CEO of Starbucks.
“Improving transaction comp in a tough consumer environment at our scale is a testament to the power of our brand and partners getting ‘Back to Starbucks.’ We are on track and if anything, I see more opportunity than I imagined.”
Cathy Smith, Starbucks Chief Financial Officer, says work is being done to get the business back to where it should be.
“While our financial results are far from Starbucks potential, we are working to build back a better business,” she says.
“We are developing new muscles to test, iterate and scale quickly, in service of long-term, durable growth and strong returns on invested capital.”
For the full financial results, click here.
