Starbucks Q2 FY2025 Earnings Summary

Starbucks reported a mixed second quarter for fiscal 2025, reflecting continued pressure on North American traffic, partially offset by international strength and steady progress under the “Back to Starbucks” turnaround strategy. Despite softer comparable sales and margin contraction, management reaffirmed confidence in the brand’s long-term positioning and operational rebuild.

Key Financial Highlights – Q2 FY2025 (13 Weeks Ended March 30, 2025)
Consolidated Revenue: $8.76B (▲2% YoY, or ▲3% constant currency)

GAAP EPS: $0.34 (▼50% YoY)

Non-GAAP EPS: $0.41 (▼40% YoY, or ▼38% constant currency)

GAAP Operating Margin: 6.9% (▼590 bps)

Non-GAAP Operating Margin: 8.2% (▼460 bps)

Segment Performance
North America
Revenue: $6.47B (▲1%)

Comp Sales: ▼1% (▼4% traffic, ▲3% ticket)

Operating Margin: 11.6% (▼640 bps YoY)

Store Count: 18,627 (▲3%)

International
Revenue: $1.87B (▲6%)

Comp Sales: ▲2% (▲3% traffic, ▼1% ticket)

China Comp Sales: Flat (▲4% traffic, ▼4% ticket)

Operating Margin: 11.6% (▼170 bps YoY)

Store Count: 22,162 (▲6%)

Channel Development
Revenue: $409M (▼2%)

Operating Margin: 47.3% (▼440 bps)

Strategic & Operational Update
Net New Stores: 213 opened in Q2; total global stores now 40,789 (53% company-operated)

U.S. & China Store Share: 61% of global footprint (U.S.: 17,122; China: 7,758)

Restructuring: $116M in costs related to 1,100+ support roles cut, impacting margins

Dividend: $0.61/share declared for Q2; 60 consecutive quarters of dividend growth

Management Commentary
CEO Brian Niccol emphasized that the "Back to Starbucks" plan is gaining traction, citing brand strength and partner engagement despite macro headwinds. CFO Cathy Smith acknowledged that financials have yet to reflect the company’s full potential but highlighted enhanced agility and foundational investments for durable growth.

Starbucks Reports Q2 Fiscal Year 2025 Results

Starbucks reported second-quarter fiscal 2025 results with consolidated net revenues up 2% to $8.8 billion. Global comparable store sales declined 1%, as a 2% drop in transactions was partially offset by a 1% increase in average ticket. In North America, comparable sales fell 1%, while international comparable sales rose 2%, driven by a 3% increase in transactions. Consolidated GAAP earnings per share were $0.34, down 50% from the prior year, while non-GAAP EPS was $0.41, down 40%. The company opened 213 net new stores, reaching a total of 40,789 globally. Operating margins contracted due to higher labor costs and restructuring expenses as part of the “Back to Starbucks” strategy. Management expressed confidence in the turnaround plan despite current financial results being below potential, emphasizing disciplined investments for long-term growth.

Starbucks warns shareholders against unsolicited mini-tender offer from tutanota llc


starbucks corporation has received notice of a mini-tender offer from tutanota llc, proposing to purchase up to 500,000 shares of starbucks common stock at $88.00 per share. this offer represents approximately 0.04% of the company’s outstanding shares.

starbucks recommends shareholders do not participate in the offer for several reasons:

- the offer price is conditional upon starbucks’ stock closing above $88.00 on the final trading day before the offer expires, meaning shareholders could receive a below-market price.
- the offer is subject to multiple other conditions, including tutanota securing financing.
- shareholders who have already tendered shares may withdraw them at any time before 5:00 p.m. et on may 12, 2025, unless the deadline is extended.

starbucks clarified that it is not affiliated with tutanota and does not endorse the offer. the company noted that mini-tender offers typically involve less than 5% of a company’s shares and are not subject to the same regulatory requirements as larger offers, providing fewer protections for investors.

investors are encouraged to consult the sec’s mini-tender guidance at www.sec.gov/investor/pubs/minitend.htm and review related notices from the sec and finra for additional information.

Starbucks Urges Shareholders to Reject Mini-Tender Offer from Tutanota LLC


Starbucks has issued a warning to shareholders regarding an unsolicited “mini-tender” offer from Tutanota LLC to purchase up to 500,000 shares of Starbucks common stock at $88.00 per share. The company strongly advises investors not to participate in the offer, citing unfavorable conditions and a potentially below-market price.

The offer is contingent upon several conditions, including that Starbucks' stock closes above $88.00 on the final trading day before the offer’s expiration. Additionally, Tutanota must secure financing, and there is no assurance that these conditions will be met. Shareholders who have already tendered their shares are permitted to withdraw them before the offer’s scheduled expiration on May 12, 2025.

Starbucks emphasized that it is not affiliated with Tutanota and does not endorse the offer. The company noted that mini-tender offers typically seek less than 5% of a company’s shares, enabling them to bypass many SEC disclosure requirements, and thus provide less protection to investors. Both the SEC and FINRA have previously issued warnings about the risks associated with such offers.

Starbucks Coffee Company (Nasdaq: SBUX) plans to release its second quarter fiscal year 2025 financial results after market close on Tuesday, April 29, 2025, with a conference call to follow at 2:00 p.m. Pacific Time.

The conference call will be webcast, including closed captioning, and can be accessed on the company’s website at https://investor.starbucks.com/. A replay of the webcast will be available on the company’s website until the end of day, Friday, June 13, 2025.

Starbucks Corporation (NASDAQ: SBUX) today announced that its Board of Directors has approved a quarterly cash dividend of $0.61 per share of outstanding Common Stock. The dividend will be payable in cash on May 30, 2025, to shareholders of record on May 16, 2025.

Starbucks Corporation announced leadership changes in its financial team. Cathy R. Smith has been appointed as executive vice president and chief financial officer, taking over as the company’s principal financial officer and principal accounting officer, effective March 24, 2025. She replaces Rachel Ruggeri, who stepped down from these roles on March 7, 2025, but will support the transition through March 28, 2025.

During the transition period, the board appointed Val Bauduin, Starbucks’ senior vice president of North America Finance, as interim chief financial officer, principal financial officer, and principal accounting officer, effective March 7, 2025. Bauduin, who joined Starbucks in 2024, previously held leadership positions at Marriott International and Deloitte & Touche LLP. His compensation will remain unchanged during his interim tenure.

Starbucks Corporation announced the appointment of Cathy R. Smith as its new executive vice president and chief financial officer, effective on a date to be determined. Smith joins Starbucks from Nordstrom, where she served as CFO and treasurer. She has also held CFO positions at Bright Health Group, Target Corporation, Express Scripts, Walmart International, GameStop, Centex, Kennametal, Textron, and Raytheon.

Smith's compensation package includes a $925,000 annual base salary, an annual cash incentive bonus at a target of 125% of her base salary, and a $5 million signing bonus. She will also receive a replacement equity grant valued at $6.4 million and a fiscal year 2025 annual equity award of $4.5 million, both comprising 60% performance-based and 40% time-based restricted stock units.

Simultaneously, Starbucks announced that Rachel Ruggeri will step down as CFO. Her departure qualifies under the "without cause" provisions of the company’s Executive Severance and Change in Control Plan.

Starbucks has announced plans to eliminate 1,100 support partner roles and several hundred additional unfilled positions as part of its “Back to Starbucks” plan to streamline operations and enhance efficiency. The decision does not affect in-store employees or investments in store hours.

CEO Brian Niccol emphasized that the restructuring aims to simplify the company’s structure, reduce complexity, and improve accountability. Leadership teams have completed their review, and affected employees will be notified by midday on February 25. The company is committed to supporting departing employees with severance packages, healthcare benefits, and career transition services.

Key changes include a requirement for vice president and higher-level leaders in North America to be present in Seattle and Toronto offices at least three days a week. Current remote employees in director and below roles will maintain their status, though future hiring will prioritize Seattle- or Toronto-based candidates unless otherwise designated.

Source: Starbucks, "Message from Brian: Global Support Partner Announcement," February 24, 2025.

Starbucks reported its Q1 fiscal year 2025 earnings, showing a flat revenue performance at $9.4 billion compared to the previous year. Global comparable store sales declined by 4%, primarily due to a 6% drop in transactions, though this was partially offset by a 3% increase in average ticket size. North America and U.S. comparable store sales also fell by 4%, with an 8% drop in transactions.

The company recorded an operating margin contraction of 390 basis points to 11.9%, driven by investments in wages, benefits, and the elimination of extra charges for non-dairy milk. Earnings per share declined by 23% to $0.69.

Despite the decline, Starbucks continued expanding its global presence, opening 377 net new stores, bringing its total to 40,576 worldwide. The Starbucks Rewards program saw a 1% year-over-year growth, reaching 34.6 million active members in the U.S.

CEO Brian Niccol highlighted the company’s early progress in its “Back to Starbucks” turnaround strategy, which aims to address operational challenges and restore brand confidence. The company also emphasized continued shareholder value through dividend payments, with a declared cash dividend of $0.61 per share.

The company reaffirmed its commitment to labor relations and workplace investments, including enhanced paid parental leave and contract negotiations with Workers United. Additionally, Mellody Hobson announced she will not seek re-election to the Board of Directors, and Starbucks China Chairwoman Belinda Wong retired after 25 years with the company.

Looking ahead, Starbucks remains focused on improving operational efficiencies, enhancing customer experiences, and driving long-term sustainable growth.

Starbucks Corporation has announced the next phase of its "Back to Starbucks" initiative, focusing on transforming its support organization. This announcement was shared with employees (referred to as partners) on January 17, 2025. The communication outlines the company's strategy to enhance internal support and is aimed at improving organizational effectiveness.