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- **Revenue Turnaround**: Q4 FY2025 marked first positive global comps in 7 quarters (+1%), driven by U.S. transaction recovery and Green Apron Service.
- **Green Apron Success**: 80% of U.S. stores achieved 4-minute service times, with Mobile Order accuracy >95% and delivery sales +30% YoY.
- **China Growth**: Starbucks China comps +2% YoY, with tea latte innovation and delivery transactions up 9%.
- **Cost Management**: G&A expenses down 2% YoY, with restructuring reducing North America store count by 1%.
- **Holiday Momentum**: Q1 2026 expected to benefit from holiday lineup and continued Green Apron rollout, with comps building through the year.

**【CEO Summary Section】**
- **Global Revenue Growth**: 5% year-over-year (YoY) in Q4 FY2025, driven by 1% global comparable store sales (comps) growth, the first positive quarter in 7 quarters.
- **Back to Starbucks Strategy**: F Apronocused on improving customer experience through Green Service, which includes better staffing, service sequencing, and menu innovation. U.S. company-operated comps turned positive in September and remained positive through October.
- **Green Apron Service Impact**: 80% of U.S. stores achieved average service times of 4 minutes or less, with Mobile Order and Pay accuracy rates above 95%. Delivery sales grew nearly 30% YoY.
- **International Momentum**: China delivered 2% comp growth, Japan returned to positive comps, and China's delivery business grew 9% in transactions.
- **Holiday Season Outlook**: Strong holiday lineup with Peppermint Mocha, Eggnog Latte, and new merchandise expected to drive Q1 momentum.

**【CFO Financial Commentary】**
- **Revenue and Earnings**: Q4 revenue of $9.6 billion (+5% YoY), EPS of $0.52 (-34% YoY) due to investments in Green Apron Service and restructuring. Non-GAAP EPS reflects $420 million GAAP net income.
- **Cost Management**: G&A expenses decreased 2% YoY to 6.6% of revenue. Restructuring actions included 107 net store closures globally, with accretive margin impact.
- **China Performance**: Starbucks China comps +2% YoY, driven by tea latte innovation and delivery growth. China's unit economics remain attractive for future expansion.
- **Tariffs and Coffee Prices**: Headwinds from elevated coffee prices and tariffs expected to persist, but partial offset by menu innovation and cost savings.

**【Q&A Highlights】**
- **Protein Platform Reception**: Protein Cold Foam and Lattes saw strong customer awareness and transaction growth, with non-Rewards customers returning to stores.
- **Green Apron Service Scaling**: 8 months into rollout, 650 pilot stores outperformed others, with sequential improvement in service and comps.
- **Store Closures Impact**: 107 net closures in Q4 reduced baseline North America revenue but transferred sales to nearby stores, with margin accretion expected.
- **License Business Strategy**: Streamlined support for licensees to improve operational excellence and profitability, with focus on tailoring execution for different channels.
- **Competition Response**: Emphasized Starbucks' scale across all channels (drive-thru, mobile, cafe) and unique value proposition of craft and connection.

Starbucks Corporation (SBUX) Q4 2025 Earnings Call Transcript

- **Green Apron Service Success**: Early pilots show 80% of in-cafe orders meet 4-minute service target, with transaction growth in pilot stores. Full U.S. rollout by mid-August.
- **China Growth Momentum**: 2% Q3 comp growth, driven by product innovation and delivery expansion. Exploring strategic partnerships to accelerate growth.
- **Cost Management Focus**: $0.5 billion investment in labor offset by P&L efficiency initiatives, targeting pre-COVID margin levels.
- **2026 Innovation Wave**: Protein cold foam, reimagined baked goods, and digital enhancements set to launch, with rewards program overhaul in early 2026.

**【CEO Summary Section】**
- **Back to Starbucks Strategy Progress**: Q3 revenue of $9.5 billion, with a 2% global comparable store sales decline. Canada and China led with positive comps, while U.S. comps improved sequentially. Green Apron Service rolled out mid-August, targeting consistent customer service standards. Early pilots showed 80% of in-cafe orders met 4-minute service target, with transaction growth in pilot stores.
- **Operational Improvements**: Partner engagement scores up, with 98.2% shift completion. Customer complaints down, and non-Rewards member transactions grew YoY for the first time since recovery. Green Apron Service includes SmartQ technology for order sequencing and a new staffing model with assistant managers.
- **International Growth**: China achieved 2% comp growth, driven by product innovation and delivery expansion. U.K. and Mexico showed strong performance, with Latin America maintaining double-digit growth. China exploring strategic partnerships to accelerate growth while retaining a meaningful stake.

**【CFO Financial Commentary】**
- **Financial Results**: Q3 GAAP EPS of $0.50, down 45% YoY due to investments in Back to Starbucks (e.g., $0.5 billion in labor hours). Operating margin contracted 650 bps to 10.1%, reflecting expense deleverage. Non-GAAP EPS exceeded expectations, with strong cost control in G&A and marketing.
- **Cost Management**: Focused on resetting cost structure across P&L, including menu simplification and efficiency initiatives. Coffee prices moderating, with hedging to mitigate tariff impacts. Long-term goal to return to pre-COVID margin levels (e.g., 17% corporate-wide).
- **Innovation Pipeline**: 2026 plans include menu innovations (protein cold foam, reimagined baked goods), digital enhancements (Mobile Order & Pay), and rewards program overhaul. Fall 2025 highlights include Pumpkin Spice Latte and protein platform launches.

**【Q&A Highlights】**
- **Green Apron Service Rollout**: Accelerated to all U.S. stores by mid-August, with early pilots showing transaction growth and improved service times. Assistant manager roles expanded to support operational consistency.
- **Rewards Program Reimagining**: Moving away from discounts to loyalty recognition, with features tailored to customer engagement levels. Launching in early 2026 with focus on brand love and retention.
- **China Strategy**: Seeking partner with shared vision to accelerate growth while maintaining brand integrity. Over 20 interested parties, with focus on long-term profitability and cultural alignment.
- **Competition & Value Perception**: Emphasizing premium positioning through customer service, innovation, and community connection. Sequential transaction improvements driven by operational fixes and marketing, not external factors.

Starbucks Corporation (SBUX) Q3 2025 Earnings Call Transcript

- **Customer-Centric Recovery**: North America transaction decline slows, Canada comps turn positive, US morning daypart growth.\n- **Partnership Strength**: Record-low turnover (under 50%), 0.5M+ additional shifts filled via Shift Marketplace.\n- **Tech-Driven Efficiency**: Order sequencing algorithm cuts wait times by 2 minutes, scaling to 3,000+ stores.\n- **Menu Innovation**: Matcha sales +40%, new Cortado platform, testing afternoon aperitivo menu.\n- **International Resilience**: 8/10 top markets show flat/positive comps, Japan 16Q streak of comp growth.\n- **China Turnaround**: Flat comps with transaction growth, sugar-free beverages and price adjustments.\n- **Cost Control Focus**: G&A down 3%, evaluating store portfolio for efficiency, reducing new store build costs.\n- **Marketing Impact**: Brand first-choice sentiment highest in 2 years, non-Rewards traffic improving.\n

**【CEO Opening Remarks】**
- **Back to Starbucks Strategy**: Focus on customer experience, green apron partner support, and third-place community building.\n- **North America Recovery**: 1% global comparable store sales decline (US: -2%), Canada returning to positive comps.\n- **Partnership Strength**: Turnover drops to under 50% (record low), 0.5M+ additional shifts filled via Shift Marketplace.\n- **Technology Integration**: Scaling green apron service model to 2,000+ US stores with order sequencing algorithm, reducing wait times by 2 minutes.\n- **Menu Simplification**: Removing discounts, matcha sales +40%, new Cortado platform launched.\n- **International Momentum**: 8/10 top markets show flat or positive comps (UK, Middle East, Japan).\n- **China Progress**: Flat comps with transaction growth, sugar-free beverages and price adjustments.\n- **CAPEX Shift**: Pausing Siren cold brew equipment rollout, focusing on labor investments over capital.\n- **Digital Expansion**: 25%+ US stores with digital menu boards, app updates for scheduled pickups.\n
**【CFO Financial Overview】**
- **Q2 2025 Results**: $8.8B revenue (+3% CAGR), EPS $0.41 (-38% YoY).\n- **Margins Under Pressure**: Operating margin 8.2% (-450bps YoY) due to labor costs, G&A down 3%.\n- **Tariff Mitigation**: Cross-functional team managing supply chain risks, holiday production shifted to avoid tariffs.\n- **Coffee Cost Management**: 10-15% of P&D costs, hedging strategies limit price volatility impact.\n- **ROIC Focus**: Prioritizing returns on invested capital, evaluating store portfolio for efficiency.\n
**【Q&A Highlights】**
- **Labor Investment**: Scaling green apron model to 3,000+ stores, transaction growth in pilot locations.\n- **Menu Innovation**: Aperitivo afternoon menu testing, agile approach to food/beverage R&D.\n- **China Strategy**: Localized Back to Starbucks plan, improved customer/partner engagement scores.\n- **Pricing Discipline**: No 2025 price hikes, focusing on value through experience rather than discounts.\n- **Marketing ROI**: Brand first-choice sentiment highest in 2 years, linear TV/radio campaigns driving non-Rewards customer traffic.\n- **CAPEX Reduction**: New store build costs being re-engineered for efficiency, aiming to double US footprint with optimized designs.\n

Starbucks (SBUX)-29 Apr 25-2025 Q2 Earnings call transcript

- **Revenue Stability**: Q1 revenue $9.4B (flat YoY), U.S. comp sales -4% but sequential improvement in morning daypart and non-Rewards traffic.
- **Strategic Investments**: +180bps margin pressure from labor, $0.06 EPS impact from nondairy milk customization removal. Early signs of customer engagement from menu simplification.
- **Operational Focus**: Testing 4-minute wait time algorithms, removing condiment bars, and expanding free refills to enhance customer experience.
- **Growth Drivers**: U.S. store count could double, with focus on smaller formats and strategic locations. China market assessment underway.
- **FY2025 Outlook**: Q2 EPS lowest due to restructuring, with margin expansion expected in latter half of year.

**【CEO Summary Section】**
- **Back to Starbucks Strategy**: Focused on reducing discounts (40% fewer discounted transactions YoY), reintroducing coffee condiment bars, and emphasizing the handcrafted coffee experience. U.S. comparable store sales improved sequentially, driven by non-Starbucks Rewards customer growth and morning daypart sales.
- **Menu Simplification**: Aiming to reduce beverages and food SKUs by 30% by end of FY2025, with a focus on premium, high-margin items. Removed extra charge for nondairy milk customizations, leading to increased customer engagement.
- **Operational Efficiency**: Testing new in-store algorithms to optimize mobile order sequencing, aiming for a 4-minute wait time. Piloting 700 stores to refine staffing and service models. Expanded free refills on hot and iced coffee/tea for non-Rewards customers.
- **International Expansion**: U.S. store count could double, with a focus on smaller formats and strategic locations. Visited China to assess market potential and implement local learnings.
- **Partner Experience**: Increased paid parental leave, committed to promoting 90% of retail leadership from within, leading to improved partner retention and engagement.

**【CFO Financial Commentary】**
- **Q1 Financials**: Total revenue $9.4B (flat YoY), U.S. comparable store sales down 4%, global operating margin 11.9% (down 380bps YoY). EPS $0.69 (-22% YoY) due to margin contraction and elevated investments.
- **Key Investments**: +180bps margin pressure from labor (additional coverage hours, wage increases), $0.06 EPS impact from nondairy milk customization removal. Marketing spend shifted from discounts to brand awareness campaigns.
- **Efficiencies**: In-store and supply chain savings offset 150bps of margin contraction. Annualized pricing and reduced discounts drove 4% ticket growth in U.S.
- **FY2025 Outlook**: Q2 EPS expected to be lowest due to organizational restructuring and elevated investments. Margins to improve in latter half of year as investments yield results.

**【Q&A Highlights】**
- **Sales Improvement**: Sequential comp growth driven by non-Rewards customers and morning daypart. Early signs of menu simplification and marketing strategy effectiveness.
- **Marketing Shift**: Increased TV and digital spend to $600M+ FY2025, focusing on brand storytelling and coffee craftsmanship. Removed 40% of discounts to enhance perceived value.
- **Operational Testing**: Siren System deployment limited to top quartile stores due to order sequencing challenges. Piloting time-slot mobile ordering to reduce counter congestion.
- **Store Growth**: U.S. store count could double via new builds, renovations, and closures. Focus on high-traffic areas with smaller formats for efficiency.
- **China Strategy**: Visited China to assess market dynamics, exploring partnerships and applying supply chain learnings to North America.
- **G&A Impact**: FY2025 G&A as % of revenue higher due to lapping lower performance-based comp. Q2 restructuring charges expected to spike, with savings materializing in Q4.


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