Starbucks Reports Q1 Fiscal 2025 Results

Starbucks Corporation (Nasdaq: SBUX) today reported financial results for its 13-week fiscal first quarter ended December 29, 2024. Constant currency measures are non-GAAP measures. Please refer to the reconciliations of constant currency measures at the end of this release for more information.

For the full press release, please visit our Investor Relations site here.

• “While we’re only one quarter into our turnaround, we’re moving quickly to act on the ‘Back to Starbucks’ efforts and we’ve seen a positive response,” commented Brian Niccol, chairman and chief executive officer. “We believe this is the fundamental change in strategy needed to solve our underlying issues, restore confidence in our brand and return the business to sustainable, long-term growth,” Niccol added.

• “We are encouraged by our Q1 results, which demonstrated the effectiveness of our ‘Back to Starbucks’ strategy, evidenced by our top-line trend,” commented Rachel Ruggeri, chief financial officer. “Although we are in the beginning chapter, and have much more work ahead of us, we will continue to prioritize shareholder value through dividends, providing a predictable return of capital while we turn around our business,” Ruggeri added.

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Q1 FY25 Earnings Video Transcript

Brian Niccol, chairman and ceo

In Q1 fiscal year 2025, we focused on getting “Back to Starbucks,” and those things that have always set us apart. It’s the fundamental change we need to stabilize the business and return to growth, and, to date, we’ve seen a positive response.

While we have room for improvement, we’re making progress as planned, and have confidence we’re on the right track.

We’ve taken steps to refocus the business, our mission and our marketing to better align with our identity as a coffee company.

We’re relying less on discounts to drive customer traffic and doing more to demonstrate our value. We removed the extra charge for non-dairy milk customizations, just launched a new coffee-forward brand campaign and are starting to pare-down our menu.

To get that moment of connection between our baristas and the customer right and meet our four-minute wait time goal, we’ve started work to address order sequencing bottlenecks through staffing and deployment enhancements, process improvements and a new algorithm pilot.

We’ve also taken several early steps to re-establish Starbucks as the community coffeehouse and improve the café experience — from the rollout of coffee condiment bars and ceramic mugs to handwritten notes on cups.

I’m committed to ensuring Starbucks is the best job in retail and to creating economic opportunity for our partners. During the quarter, we more than doubled paid-parental leave for eligible U.S. store partners and we made a new commitment to promote from within for 90% of our retail leadership roles.

While we’re just getting started, the response we’ve seen so far gives us confidence that we can return the business to growth. We’re moving quickly, executing with excellence and delivering on our commitments. In doing so, we’ll get back to a Starbucks that’s loved for its coffee, welcoming coffeehouses and the talented green apron partners in all our stores.