Starbucks Corporation's Stock Analysis

Starbucks Plans Major Store Closures and Restructuring Efforts

Starbucks Corporation has approved a restructuring plan that includes the closure of certain coffeehouses as part of its 'Back to Starbucks' strategy aimed at revitalizing customer experience and financial performance. The company anticipates incurring approximately $1 billion in costs related to these closures and other organizational changes, with the majority of expenses expected to impact its North America business. The restructuring will involve around $150 million in employee separation benefits, $400 million related to asset impairment, and $450 million associated with lease costs due to early store closures.

In addition to closing underperforming locations, Starbucks will reduce its non-retail workforce by approximately 900 roles to streamline operations and focus resources on enhancing customer service and store design. The company aims to uplift over 1,000 coffeehouses in the next year to create a more inviting atmosphere. While the total number of company-operated Starbucks locations in North America is projected to decline by about 1% in fiscal year 2025, the company plans to increase its coffeehouse count in fiscal year 2026 as it continues to invest in its business.

Sep 25, 2025 07:00:18

Starbucks Reports Q3 2025 Financial Results and Store Growth

Starbucks Corporation reported its financial results for the third quarter of fiscal year 2025, with consolidated net revenues increasing by 4% to $9.5 billion. However, global comparable store sales declined by 2%, primarily due to a decrease in transactions despite a slight increase in average ticket prices. The company opened 308 new stores, bringing the total to 41,097, with a significant presence in the U.S. and China. The operating margin also contracted, with GAAP earnings per share falling by 47% year-over-year to $0.49, influenced by one-time investments and increased operational costs.

In the North America segment, net revenues rose by 2% to $6.9 billion, while the international segment saw a 9% increase to $2.0 billion. The Channel Development segment reported a 10% revenue increase, driven by growth in the Global Coffee Alliance. The company also declared a cash dividend of $0.61 per share, continuing its track record of consistent payouts. Starbucks aims to enhance its operations through its 'Back to Starbucks' strategy, which focuses on improving customer service and operational efficiency.

Jul 29, 2025 16:06:48

Starbucks Appoints Dambisa Moyo and Marissa Mayer to Board

Starbucks Coffee Company announced the election of Dr. Dambisa Moyo and Marissa Mayer to its Board of Directors, effective June 25, 2025. Moyo, a co-principal of Versaca Investments and a seasoned global economist, has held leadership roles at Mildstorm LLC, Goldman Sachs, and the World Bank. Mayer, the CEO and Founder of Sunshine AI, has over 20 years of experience in consumer technology and previously served as CEO of Yahoo! and spent 13 years at Google. Both bring extensive experience that aligns with Starbucks' focus on technology and global affairs.

The addition of Moyo and Mayer expands Starbucks' Board of Directors to eleven members. Starbucks' Chairman and CEO Brian Niccol expressed enthusiasm for their expertise, noting their potential contributions to the company's strategic direction, particularly regarding its 'Back to Starbucks' strategy aimed at leveraging digital tools and enhancing customer experiences. The company has a long-standing commitment to quality and community engagement, with over 40,000 stores globally.

Jun 26, 2025 16:05:28

Starbucks Secures $3 Billion Revolving Credit Facility Agreement

Starbucks Corporation has entered into a new $3.0 billion unsecured revolving credit facility agreement scheduled to mature on June 13, 2030. This agreement allows for an increase of up to $1.0 billion under specific conditions and includes provisions for interest rates based on the Term Secured Overnight Financing Rate (Term SOFR) and other benchmarks. The company is required to maintain certain financial covenants, such as a minimum fixed charge coverage ratio of 2.50 to 1, and default events may lead to immediate repayment demands from lenders.

In connection with this new credit facility, Starbucks has terminated its previous credit agreement from September 2021. The new agreement involves several major financial institutions as lenders and includes standard provisions regarding events of default and compliance requirements. The lenders may also engage in banking transactions with Starbucks in the future, maintaining a business relationship beyond this agreement.

Jun 16, 2025 16:55:57

Starbucks Announces Leadership Changes to Enhance Operations

Starbucks has announced several organizational changes aimed at improving its operations and leadership accountability. Mike Grams has been appointed as the chief operating officer, overseeing both North American coffeehouses and global coffeehouse development, with Meredith Sandland and Sanjay Shah reporting to him. Additionally, the Global Coffee and Sustainability team will merge with the Global Brand team, enhancing the focus on coffee and sustainability within the company's product offerings. Michelle Burns will now report to Tressie Lieberman, the global chief brand officer, as part of this restructuring.

Furthermore, Deb Hall Lefevre, the chief technology officer, will report to Cathy Smith, the chief financial officer, to prioritize technology investments that improve customer interactions and beverage quality. Brad Lerman, the chief legal officer, will be leaving Starbucks, and a search for his successor is underway. The company emphasizes that these changes are part of its commitment to refocusing on customer service and operational efficiency.

Jun 04, 2025 16:25:06

Starbucks Q2 2025 Revenues Increase 2%, EPS Declines 50%

Starbucks Corporation reported its financial results for the second quarter of fiscal year 2025, with consolidated net revenues rising 2% to $8.8 billion. The company experienced a decline in global comparable store sales by 1%, with North America sales also down 1%. However, the international segment showed a 2% increase in comparable store sales. During this quarter, Starbucks opened 213 net new stores, bringing its total to 40,789 locations worldwide. Despite the revenue increase, the GAAP earnings per share dropped by 50% to $0.34 compared to the previous year, while the non-GAAP EPS was $0.41, down 40% year-over-year.

The North America segment saw a 1% increase in net revenues to $6.5 billion, but operating income decreased significantly by 35% to $748.3 million, leading to a contraction in operating margin from 18.0% to 11.6%. The international segment's net revenues grew by 6% to $1.9 billion, but operating income also fell by 7% to $217.0 million. The company declared a cash dividend of $0.61 per share, payable on May 30, 2025, continuing its commitment to shareholder returns with 60 consecutive quarters of dividend payouts.

Apr 29, 2025 16:07:24

Starbucks Advises Shareholders Against Tutanota's Mini-Tender Offer

Starbucks has announced that it received an unsolicited mini-tender offer from Tutanota LLC to purchase up to 500,000 shares at $88.00 each. The offer is contingent on the stock price exceeding $88.00 on the last trading day before expiration, meaning shareholders may receive less than the market value if they participate. The mini-tender represents about 0.04 percent of Starbucks' outstanding shares.

Starbucks recommends that shareholders do not tender their shares in response to this offer, as it is subject to various conditions, including Tutanota securing financing. Shareholders who have already tendered their shares can withdraw them before the offer's expiration on May 12, 2025. Starbucks is not associated with Tutanota and emphasizes that mini-tender offers provide less investor protection compared to larger offers regulated by the SEC.

Apr 23, 2025 17:17:31

Starbucks Announces Leadership Change with CFO Transition

Rachel Ruggeri is departing from her role at Starbucks after nearly 20 years, during which she contributed significantly to the company’s success and culture. Her leadership qualities, focus on results, and commitment to customer and partner satisfaction were highlighted, and she will assist with the transition before leaving. The company plans to recognize her contributions with an opportunity for partners to share their experiences with her.

Cathy Smith has been appointed as the new CFO, bringing extensive experience from previous CFO roles at major retailers like Nordstrom, Target, and Walmart International. Her knowledge in retail and global operations is expected to benefit Starbucks as the company continues to execute its Back to Starbucks plan. Cathy will officially start in the next month.

Mar 04, 2025 08:36:27

Starbucks Q1 Revenue at $9.4 Billion with EPS at $0.69

Starbucks reported consolidated net revenues of $9.4 billion for Q1 of fiscal year 2025, remaining flat compared to the previous year. The company opened 377 new stores, bringing its total to 40,576. Active U.S. Starbucks Rewards membership increased to 34.6 million, and U.S. card loads reached $3.5 billion, maintaining the second position in U.S. gift card sales. However, earnings per share (EPS) decreased to $0.69, a decline of 23% from the prior year, attributed to heightened investments as part of the 'Back to Starbucks' strategy and a significant contraction in operating margin, which fell to 11.9% from 15.8% year-over-year due to increased costs and lower sales volume across various segments. 

Comparable store sales globally declined by 4%, primarily driven by a 6% decrease in transactions, although there was a slight increase in average ticket size. The North America segment saw a 1% decrease in net revenues, while the international segment experienced a modest 1% increase. Overall, operating income dropped significantly, and the company is focusing on its 'Back to Starbucks' strategy to restore growth and improve financial performance.

Jan 28, 2025 16:08:03

Starbucks Initiates Support Team Restructuring Amid Operational Changes

Starbucks is revitalizing its brand by enhancing the in-store experience, including the return of the condiment bar and improved pricing transparency by eliminating the non-dairy milk upcharge. The company has also doubled paid parental leave for U.S. retail teams and aims for a high percentage of internal promotions for retail leadership roles, reflecting a commitment to employee welfare and operational efficiency.

However, the press release highlights the need for restructuring within the support teams, indicating that job eliminations and smaller support teams may occur as part of this transformation. The company acknowledges the challenges of its current structure, which includes too many layers and inefficiencies, and emphasizes the necessity of clearer ownership and accountability to improve operations. This restructuring may create uncertainty among employees as changes are communicated in early March.

Jan 17, 2025 16:06:20