Overview

• Starbucks posted Q2 revenue of $8.76 billion, a 2% year-over-year increase, marking its first revenue growth in over a year but falling short of Wall Street expectations.
• Global same-store sales dropped 1%, with U.S. same-store sales down 2% and flat performance in China, reflecting ongoing weak demand in key markets.
• Adjusted earnings per share fell to $0.41, missing analysts' forecast of $0.49, as net income halved to $384 million due to increased labor costs and restructuring expenses.
• CEO Brian Niccol's 'Back to Starbucks' plan has introduced operational changes, including faster service times and restored in-store amenities, which he says are showing early positive signs.
• The company faces external pressures from volatile coffee prices, new U.S. tariffs, and cautious consumer spending, which continue to weigh on profitability.