SBUX's second-quarter fiscal 2025 bottom line is hurt by expense deleverage and heightened store investments.
Starbucks' turnaround efforts are still in their infancy, but at least they can rely on their customers to give them some free money.
Starbucks will invest more in staffing and less on equipment, including an automation system that it previously touted, CEO Brian Niccol said on Tuesday, breaking with a wider industry trend to rely more on technology for store operations.
While the top- and bottom-line numbers for Starbucks (SBUX) give a sense of how the business performed in the quarter ended March 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Starbucks is investing in more hours for baristas in its latest turnaround effort. The chain is also rolling out an algorithm that sequences orders for store employees.
Starbucks (SBUX) came out with quarterly earnings of $0.41 per share, missing the Zacks Consensus Estimate of $0.49 per share. This compares to earnings of $0.68 per share a year ago.
Starbucks (SBUX) reported fiscal second-quarter revenue and earnings that missed analysts' expectations, sending shares lower in extended trading Tuesday.
CNBC's Kate Rooney joins 'Closing Bell Overtime' with Starbucks earnings.
Starbucks reported second-quarter earnings after the market closed on Tuesday. Under CEO Brian Niccol, the company is trying to return to growth.
Starbucks posted a bigger-than-expected drop in quarterly global comparable sales on Tuesday, as demand remained sluggish for its pricey coffees in the United States amid rising macroeconomic uncertainty. Total same-store sales declined 1% in the second quarter, compared with analysts' average estimate of a 0.26% fall, according to data compiled by LSEG.
Investors are expecting Starbucks' same-store sales to decline for the fifth straight quarter. Shares of Starbucks have fallen 8% this year, as investors worry about tariffs and how they will affect consumer spending.
Starbucks (SBUX) is slated to report fiscal second-quarter results after the bell Tuesday, marking the coffee chain's third report under new CEO Brian Niccol, who took over the role in September.