SEATTLE--(BUSINESS WIRE)--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.

Q1 Fiscal Year 2025 Highlights

• Global comparable store sales declined 4%, driven by a 6% decline in comparable transactions, partially offset by a 3% increase in average ticket
  • North America and U.S. comparable store sales declined 4%, driven by an 8% decline in comparable transactions, partially offset by a 4% increase in average ticket
  • International comparable store sales declined 4%, driven by a 2% decline in both average ticket and comparable transactions; China comparable store sales declined 6%, driven by a 4% decline in average ticket and a 2% decline in comparable transactions
• The company opened 377 net new stores in Q1, ending the period with 40,576 stores: 53% company-operated and 47% licensed
  • At the end of Q1, stores in the U.S. and China comprised 61% of the company’s global portfolio, with 17,049 and 7,685 stores in the U.S. and China, respectively
• Consolidated net revenues of $9.4 billion were flat to prior year, including on a constant currency basis
• Operating margin contracted 390 basis points year-over-year to 11.9%, primarily driven by deleverage and investments in support of “Back to Starbucks,” including store partner wages, benefits and hours, and the removal of the extra charge for non-dairy milk customizations. The contraction was partially offset by the annualization of pricing and supply chain efficiencies. On a constant currency basis, operating margin contracted 380 basis points year-over-year.
• Earnings per share of $0.69 declined 23% over prior year, or declined 22% on a constant currency basis
• Starbucks Rewards loyalty program 90-day active members in the U.S. totaled 34.6 million, up 1% year-over-year and up 2% quarter-over-quarter

“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.

Q1 North America Segment Results