Overview
- Starbucks delivered a stronger Q2 with $9.53 billion in revenue, global comparable‑store sales up about 6.2%, and a non‑GAAP EPS beat that prompted management to raise full‑year comps and EPS guidance.
- The company closed a China joint venture with Boyu Capital while slowing new store openings and executing 62 closures as part of a broader restructuring of its global footprint.
- Free cash flow covered the dividend at about 0.88x in fiscal 2025 down from 1.28x the prior year, and management suspended share buybacks, creating pressure on the chain’s 64‑quarter dividend streak.
- Investors expect Q3 results Wednesday after the market close with Street consensus of roughly $0.65 EPS on $9.12 billion revenue and will press management for updates on the $2 billion cost‑cut target and margin headwinds.
- The recovery follows several quarters of weakness, has lifted the stock about 23% year‑to‑date, and leaves income investors sensitive to commodity, tariff and delivery costs that could quickly erode profits.