Starbucks has reported a 2% increase in consolidated net revenues in the second quarter (Q2) of fiscal year (FY) 2025, reaching $8.8bn, which translates to a 3% rise on a constant currency basis.
The period saw the opening of 213 net new stores, bringing the total to 40,789 stores globally, split between 53% company-operated and 47% licensed outlets.
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The US and China remain Starbucks’ largest markets, constituting 61% of the company’s portfolio with 17,122 and 7,758 stores, respectively.
However, global comparable store sales saw a 1% decrease, attributed to a 2% reduction in comparable transactions, though this was slightly offset by a 1% rise in average ticket prices.
In North America, comparable store sales also fell by 1%, with a 4% drop in comparable transactions partly counterbalanced by a 3% increase in average ticket prices.
Specifically, these sales in the US were down by 2%, reflecting the same transaction decline and ticket increase as the broader North American market.
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By GlobalDataConversely, international comparable store sales rose by 2%, driven by a 3% boost in comparable transactions despite a 1% decrease in average ticket prices.
China’s store sales remained unchanged, with transaction growth neutralised by a reduction in average ticket prices.
The North America segment saw a 1% revenue increase during the period to $6.5bn, largely due to a 5% growth in net new company-operated stores over the past year.
However, operating income dropped to $748.3m in Q2 FY 2025 from $1.1bn in the same quarter the previous year due to deleverage and additional labour in support of “Back to Starbucks”.
The International segment’s net revenues rose by 6% to $1.9bn, spurred by an 8% growth in company-operated stores, expansion in the licensed store business, and additional revenue from the acquisition of a licensed business partner in the UK.
Despite this, operating income for the channel development segment decreased to $217.0m, down from $233.8m in Q2 FY 2024 due to high promotional activity and restructuring costs.
Starbucks chairman and CEO Brian Niccol said: “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. 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.”
Starbucks UK has disclosed a pre-tax loss of £35.2m ($44.8m) for the year ending 29 September 2024, marking a downturn from the £16.9m profit recorded in the prior year.
