The earnings call reflected a transitional phase for Starbucks, with early positive responses to strategic shifts like the 'Back to Starbucks' initiative and marketing changes. However, significant challenges remain, such as declining comparable store sales, margin contraction, and flat revenue growth. The company is focused on operational improvements and expansion opportunities to drive future growth.

Company Guidance

During the first quarter of fiscal year 2025, Starbucks reported a total company revenue of $9.4 billion, a global operating margin of 11.9%, and earnings per share (EPS) of $0.69. The company's global comparable store sales declined by 4%, driven primarily by a similar 4% decline in the U.S. market. Despite these figures, Starbucks made strategic investments in labor, marketing, and technology as part of its "Back to Starbucks" initiative, aimed at restoring brand confidence and achieving long-term growth. The company reduced discounted transactions by 40% year-over-year, removed extra charges for non-dairy milk customizations, and launched a new marketing campaign to broaden customer reach. Additionally, Starbucks introduced measures to enhance partner experience, such as increased paid parental leave and a commitment to promote internally. Looking ahead, Starbucks plans to optimize its menu by reducing beverages and food SKUs by approximately 30% and is piloting new technology to improve order sequencing, all while exploring opportunities for significant store count expansion in the U.S.

Successful Strategy Shift

Starbucks' 'Back to Starbucks' strategy has driven early progress, including gradual top-line improvement, increasing confidence in the company's focus on the right priorities.

Increase in Non-Starbucks Rewards Traffic

Non-Starbucks Rewards customer traffic grew quarter-over-quarter, indicating a positive response to the new marketing strategies.

Menu Simplification and Innovation

Starbucks plans to reduce its menu by approximately 30% by the end of fiscal year 2025, focusing on fewer, better beverage and food offerings.

Expansion Potential in the US

Starbucks sees the potential to double its store count in the US, leveraging smaller formats and diverse store types for better market penetration.

Increased Marketing Investment

Marketing as a percentage of revenue is close to doubling, reallocating budget from discounts to brand advertising, enhancing brand recognition and customer reach.

Improved Morning Daypart Sales

Sales in the morning daypart showed improvement, driven by strategic marketing shifts and operational enhancements.

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Starbucks (SBUX) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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SBUX Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
May 06, 2025	2025 (Q2)	0.51 / -	0.68	―	―	―
Jan 28, 2025	2025 (Q1)	0.67 / 0.69	0.9	-23.33% (-0.21)
Oct 30, 2024	2024 (Q4)	0.87 / 0.80	1.06	-24.53% (-0.26)
Jul 30, 2024	2024 (Q3)	0.94 / 0.93	1	-7.00% (-0.07)
Apr 30, 2024	2024 (Q2)	0.80 / 0.68	0.74	-8.11% (-0.06)
Jan 30, 2024	2024 (Q1)	0.93 / 0.90	0.75	20.00% (+0.15)
Nov 02, 2023	2023 (Q4)	0.97 / 1.06	0.81	30.86% (+0.25)
Aug 01, 2023	2023 (Q3)	0.95 / 1.00	0.84	19.05% (+0.16)
May 02, 2023	2023 (Q2)	0.65 / 0.74	0.59	25.42% (+0.15)
Feb 02, 2023	2023 (Q1)	0.77 / 0.75	0.72	4.17% (+0.03)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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SBUX Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Jan 28, 2025	$99.87	$107.99	+8.13%
Oct 30, 2024	$96.20	$96.58	+0.40%
Jul 30, 2024	$74.61	$76.59	+2.65%
Apr 30, 2024	$86.29	$72.59	-15.88%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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