Starbucks reported fiscal Q4 2025 results, with net revenues of $9.57 billion, up 5% year‑over‑year, and adjusted earnings per share of $0.52, below the consensus estimate of $0.56. Net earnings attributable to Starbucks were $133.1 million, or $0.12 per diluted share, while the company declared a quarterly cash dividend of $0.62 per share.
The North America segment generated $6.90 billion in revenue, up 3%, and $308.5 million in operating income. The International segment produced $2.07 billion in revenue, up 9%, and $223.2 million in operating income. The Channel Development segment reported $542.6 million in revenue and $265.2 million in operating income.
Global comparable store sales rose 1%, driven by a 3% gain in international markets; U.S. same‑store sales were flat for the quarter. Starbucks closed 627 stores during the quarter, 90% of which were in North America, bringing its U.S. company‑operated count to 18,311.
Operating margin contracted to 4.5% from 18.7% a year earlier, largely due to restructuring costs, labor‑hour investments under the "Back to Starbucks" plan, and higher commodity prices. The company also simplified its support organization, impacting non‑retail headcount.
Starbucks maintains a strong liquidity position with cash and investments of $4.7 billion and an undrawn $3.0 billion revolving credit facility.
Management said the first global comparable‑store sales growth in seven quarters signals progress in its turnaround strategy, while acknowledging that margin improvement will take time as it continues to invest in labor and operational efficiencies. Guidance will be provided at an investor day in late January 2026.
The "Back to Starbucks" strategy, launched in fiscal year 2024, focuses on coffee quality, customer connection, and store experience. The positive comparable‑store sales growth is evidence of the strategy gaining traction amid a challenging environment of discretionary spending cuts and increased competition.
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