Starbucks Earnings Call Transcripts
Fiscal Year 2026
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The meeting focused on operational improvements, partner investment, and strategic growth, with robust discussion of nine shareholder proposals on governance and social policy. Leadership emphasized financial momentum, international expansion, and ongoing engagement with stakeholders.
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Management outlined a multi-year plan focused on operational excellence, digital innovation, and global expansion, targeting at least 3% comp sales growth and 5%+ revenue growth by 2028. Key initiatives include a new loyalty program, AI-driven operations, and a shift to an asset-light international model, especially in China.
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Q1 FY26 saw 5% global revenue growth to $9.9B, with strong comp sales and transaction gains in both North America and international markets. Strategic investments in service, technology, and menu innovation are driving brand momentum, while margin pressures are expected to ease in H2.
Fiscal Year 2025
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Q4 saw 5% global revenue growth and the first positive comp quarter in seven quarters, driven by international strength and operational improvements. Investments in service, menu innovation, and store experience are building momentum, despite margin pressure from inflation.
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Q3 revenue grew 3% to $9.5B, but global comps fell 2% and EPS dropped 45% year-over-year due to heavy investments in labor and operational transformation. The Green Apron Service model and digital innovation are being rapidly scaled, with 2026 expected to show improved margins and growth.
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Q2 revenue grew 3% year-over-year to $8.8B, but EPS fell 38% as labor investments and margin compression weighed on results. Early signs of recovery are seen in transaction comps, partner engagement, and international markets, with a focus on operational improvements and innovation.
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The meeting outlined a renewed focus on core values, partner experience, and operational simplification, with strategic initiatives targeting brand revitalization, store redesign, and global growth. Shareholder proposals on governance, labor, and sustainability were debated, with voting results pending.
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Q1 FY25 results met expectations with $9.4B revenue, 4% comp sales decline, and 11.9% margin. Strategic focus on core coffeehouse experience, operational improvements, and reduced discounting is showing early positive impact, with EPS expected to improve in the second half.
Fiscal Year 2024
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Q4 revenue fell 3% year-over-year with a 7% drop in comp sales and 8% fewer transactions, while full-year revenue rose 1% on new store growth. Leadership announced a turnaround plan focused on operational basics, menu simplification, and store redesign, with 2025 guidance suspended.
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A comprehensive strategy is underway to restore growth by refocusing on core values, improving partner support, simplifying operations, and re-engaging all customers through enhanced experiences and marketing. The plan targets both U.S. and international growth.
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Q3 revenue grew 1% year-over-year to $9.1B, with global comps down 3% and U.S. comps down 2%. Operational improvements and efficiency gains are offsetting a challenging consumer environment, while full-year guidance is reaffirmed and loyalty membership continues to grow.
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Facing transitory headwinds, the business is leveraging product innovation, digital engagement, and operational improvements to drive sequential revenue growth and margin expansion. Strong unit economics support global expansion, with a focus on value, personalization, and efficiency.