Starbucks reports flat Q1 FY25 revenue at US$9.39B, down 0.3% on constant currency basis

GLOBAL – Leading coffeehouse chain Starbucks has posted total net revenue ofUS$9.39 billion in Q1 FY25, remaining flat compared to US$9.42 billion in the same period last year, with a 0.3% decline on a constant currency basis.

The company’s net earnings for Q1 2025, which ended on December 29, 2024, declined by 23.8% to US$780.8 million, compared to US$1.02 billion in Q1 2024.

Diluted earnings per common share fell 23.3% year-on-year, reaching US$0.69, down from US$0.90 in the previous year. Operating income also saw a 24.5% decline, totaling US$1.12 billion. 

Global comparable store sales decreased by 4%, primarily driven by a 6% drop in transactions, though partially offset by a 3% rise in the average customer ticket.

In North America, including the US, comparable sales fell 4%, with an 8% decline in transactions slightly balanced by a 4% increase in the average ticket size.

Internationally, sales declined by 4%, impacted by a 2% drop in both transactions and the average ticket. In China, comparable store sales declined by 6%, resulting from a 4% decrease in average ticket size and a 2% drop in transactions. 

Despite the downturn, Starbucks continued its expansion, adding 377 net new stores in Q1 2025. This growth brought its total store count to 40,576, with 53% company-operated locations and 47% licensed outlets.

The US and China accounted for 61% of the total footprint, with 17,049 stores in the US and 7,685 in China. 

Starbucks Chairman and CEO Brian Niccol stated that, although still early in the company’s turnaround efforts, initial responses to the “Back to Starbucks” strategy had been positive.

He emphasized that this strategic shift was necessary to address core challenges, rebuild brand confidence, and restore sustainable long-term growth. 

Niccol took over as Starbucks chairman and CEO in September 2024, introducing the “Back to Starbucks” initiative, which reinstated policies requiring customers to make a purchase before using café spaces or restrooms.

Known for his leadership at Chipotle, he officially assumed his role on September 9, 2024. 

Niccol replaced Laxman Narasimhan, who stepped down as CEO and board member. During his tenure, Narasimhan contributed to improving partner experience and store operations. 

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