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Starbucks Reports Modest Revenue Growth Amidst Turnaround Efforts

Starbucks ( (SBUX) ) has released its Q2 earnings. Here is a breakdown of the information Starbucks presented to its investors.

Starbucks Corporation is a leading global roaster and retailer of specialty coffee, with over 40,000 stores worldwide, known for its commitment to ethically sourced arabica coffee and the unique Starbucks Experience. In its Q2 fiscal year 2025 earnings report, Starbucks announced a 2% increase in consolidated net revenues to $8.8 billion, despite a 1% decline in global comparable store sales. The company’s ‘Back to Starbucks’ strategy is highlighted as a key driver in its turnaround efforts. Key financial metrics showed a mixed performance; while net revenues increased, GAAP operating margin contracted significantly by 590 basis points to 6.9%, and GAAP earnings per share fell by 50% to $0.34. The company opened 213 net new stores, with a significant presence in the U.S. and China, which together account for 61% of its global portfolio. Looking ahead, Starbucks management remains optimistic about its strategic initiatives aimed at long-term growth and improved operational efficiency, despite current financial challenges.

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