Starbucks reports 2% revenue growth in Q2 FY2025, reaching US$8.8B

GLOBAL – Starbucks has announced a 2% year-on-year increase in consolidated net revenues for the second quarter of fiscal year 2025, totaling US$8.8 billion.

On a constant currency basis, this reflects a 3% rise.

Starbucks reported the opening of 213 net new stores during the period, bringing its global total to 40,789 locations.

These are divided between 53% company-operated and 47% licensed outlets.

The United States and China continue to represent the brand’s largest markets, accounting for 61% of its global footprint with 17,122 and 7,758 stores, respectively.

Despite the store growth, global comparable store sales declined by 1%, primarily due to a 2% drop in comparable transactions.

This was slightly mitigated by a 1% increase in average ticket prices.

In North America, the trend mirrored global performance, with comparable store sales down by 1% as a 4% decline in transactions was partly offset by a 3% rise in average spend per visit.

In the United States specifically, comparable store sales fell by 2%, reflecting the same shift in transaction volume and ticket value as the wider North American market.

In contrast, international comparable store sales increased by 2%, driven by a 3% uptick in transactions, although this was tempered by a 1% decline in average ticket prices.

China’s performance remained flat, as growth in transaction volume was cancelled out by a drop in average ticket size.

North America’s segment revenue rose by 1% to US$6.5 billion, supported by a 5% increase in net new company-operated stores over the past year.

However, operating income in this segment declined significantly, falling to US$748.3 million in Q2 FY2025 from US$1.1 billion in the same quarter of the previous year.

This was attributed to deleverage and increased labour costs related to the company’s “Back to Starbucks” initiative.

The International segment posted a 6% increase in net revenue to US$1.9 billion, fuelled by 8% growth in company-operated stores, a larger licensed store footprint, and added revenue from the acquisition of a former licensed partner in the UK.

Nevertheless, operating income in the channel development segment fell to US217.0 million from US$233.8 million in Q2 FY2024, impacted by high promotional spending and restructuring expenses.

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