# Starbucks Corporation (SBUX) Q3 2025 Financial Results Summary
Starbucks Corporation (Nasdaq: SBUX) released its financial results for the fiscal third quarter ended June 29, 2025, on July 29, 2025. Below is a summary of the key highlights from the report.
### Q3 Fiscal Year 2025 Highlights
– **Global Comparable Store Sales**:
– Declined **2%**, driven by a **2%** decrease in comparable transactions, partially offset by a **1%** increase in average ticket price.
– **North America Performance**:
– Comparable store sales declined **2%**:
– **U.S.** comparable store sales also declined **2%**, with a **4%** drop in transactions, while average ticket increased by **2%**.
– **Store Count**: Increased to **18,734** stores, representing a **3%** increase year-over-year.
– **Net Revenues**: Increased **2%** to **$6.9 billion**.
– **Operating Income**: Decreased **36%** to **$918.7 million**.
– **Operating Margin**: Contracted to **13.3%**, down from **21.0%**, a reduction of **770 basis points**.
– **International Performance**:
– Comparable store sales remained flat overall, but:
– **China Comparable Store Sales** increased **2%**, driven by a **6%** increase in transactions.
– **Net Revenues**: Increased **9%** to **$2.0 billion**.
– **Operating Income**: Decreased **5%** to **$272.7 million**.
– **Operating Margin**: Contracted to **13.6%**, down from **15.6%**, a decrease of **200 basis points**.
– **Channel Development Performance**:
– **Net Revenues**: Increased **10%** to **$483.8 million**.
– **Operating Income**: Decreased **7%** to **$218.4 million**.
– **Operating Margin**: Contracted to **45.1%**, down from **53.7%**, a decline of **860 basis points**.
### Overall Financial Performance
– **Consolidated Net Revenues**: Increased **4%** to **$9.5 billion**, or a **3%** increase on a constant currency basis.
– **GAAP Earnings Per Share**: Declined **47%** to **$0.49**; Non-GAAP EPS was $0.50, which is a decline of **46%** year-over-year.
– **GAAP Operating Margin**: Decreased by **680 basis points** to **9.9%**.
– **Non-GAAP Operating Margin**: Decreased by **660 basis points** to **10.1%**.
### Company Actions and Updates
– Starbucks opened **308** net new stores in Q3, leading to a total of **41,097** stores globally.
– **Store Composition**: 53% were company-operated and 47% were licensed.
– Stores in the U.S. and China composed **61%** of the global portfolio.
– The company completed a **$1.75 billion** bond issuance in May for general corporate purposes.
– Appointed Mike Grams as chief operating officer in June.
– Hosted the largest Leadership Experience 2025 conference, focusing on enhancing customer service and operational efficiency.
### Dividend Declaration
– The Board declared a cash dividend of **$0.61** per share, payable on August 29, 2025, to shareholders of record as of August 15, 2025.
– This marks the **61st** consecutive quarter of dividend payouts with a **CAGR of 18%**.
### Fiscal Year 2025 Summary
– **Effective Tax Rate**: Increased to **31.8%** from **24.8%** in the prior year, largely due to changes in foreign tax assertions.
– **Investments**: The company has focused on methods to build back a stronger Starbucks experience with ongoing investments in leadership and operational support.
Starbucks continues to strive for innovation and improved customer connections as it develops its “Back to Starbucks” strategy. An earnings conference call discussing these results is scheduled for 1:15 p.m. Pacific Time on the same day as the release.
Here are the extracted tables in HTML format:
### CONSOLIDATED STATEMENTS OF EARNINGS
*(unaudited, in millions, except per share data)*
| Quarter Ended | Jun 29, 2025 | Jun 30, 2024 | % Change | Jun 29, 2025 | Jun 30, 2024 |
|---|---|---|---|---|---|
| As a % of total net revenues | |||||
| Net revenues: | |||||
| Company-operated stores | $ 7,812.5 | $ 7,516.0 | 3.9 % | 82.6 % | 82.5 % |
| Licensed stores | 1,105.6 | 1,129.0 | -2.1 | 11.7 | 12.4 |
| Other | 537.9 | 468.9 | 14.7 | 5.7 | 5.1 |
| Total net revenues | 9,456.0 | 9,113.9 | 3.8 | 100.0 | 100.0 |
| Product and distribution costs | 2,955.5 | 2,740.9 | 7.8 | 31.3 | 30.1 |
| Store operating expenses | 4,344.8 | 3,829.1 | 13.5 | 45.9 | 42.0 |
| Other operating expenses | 151.6 | 143.9 | 5.4 | 1.6 | 1.6 |
| Depreciation and amortization expenses | 427.6 | 380.4 | 12.4 | 4.5 | 4.2 |
| General and administrative expenses | 677.2 | 576.0 | 17.6 | 7.2 | 6.3 |
| Restructuring | 20.8 | — | nm | 0.2 | — |
| Total operating expenses | 8,577.5 | 7,670.3 | 11.8 | 90.7 | 84.2 |
| Income from equity investees | 57.1 | 73.9 | -22.7 | 0.6 | 0.8 |
| Operating income | 935.6 | 1,517.5 | -38.3 | 9.9 | 16.7 |
| Interest income and other, net | 25.6 | 28.1 | -8.9 | 0.3 | 0.3 |
| Interest expense | -142.3 | -141.3 | 0.7 | -1.5 | -1.6 |
| Earnings before income taxes | 818.9 | 1,404.3 | -41.7 | 8.7 | 15.4 |
| Income tax expense | 260.4 | 348.6 | -25.3 | 2.8 | 3.8 |
| Net earnings including noncontrolling interests | 558.5 | 1,055.7 | -47.1 | 5.9 | 11.6 |
| Net earnings attributable to noncontrolling interests | 0.2 | 0.9 | -77.8 | 0.0 | 0.0 |
| Net earnings attributable to Starbucks | $ 558.3 | $ 1,054.8 | -47.1 | 5.9 % | 11.6 % |
| Net earnings per common share – diluted | $ 0.49 | $ 0.93 | -47.3 % | ||
| Weighted avg. shares outstanding – diluted | 1,139.8 | 1,135.8 | |||
| Cash dividends declared per share | $ 0.61 | $ 0.57 | |||
| Supplemental Ratios: | |||||
| Store operating expenses as a % of company-operated store revenues | 55.6 % | 50.9 % | |||
| Effective tax rate including noncontrolling interests | 31.8 % | 24.8 % |
—
### CONSOLIDATED BALANCE SHEETS
*(unaudited, in millions, except per share data)*
| Jun 29, 2025 | Sep 29, 2024 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 4,172.6 | $ 3,286.2 |
| Short-term investments | 333.3 | 257.0 |
| Accounts receivable, net | 1,242.6 | 1,213.8 |
| Inventories | 2,259.2 | 1,777.3 |
| Prepaid expenses and other current assets | 413.8 | 313.1 |
| Total current assets | 8,421.5 | 6,847.4 |
| Long-term investments | 232.0 | 276.0 |
| Equity investments | 485.9 | 463.9 |
| Property, plant and equipment, net | 8,893.7 | 8,665.5 |
| Operating lease, right-of-use asset | 9,581.4 | 9,286.2 |
| Deferred income taxes, net | 1,805.9 | 1,766.7 |
| Other long-term assets | 674.3 | 617.0 |
| Other intangible assets | 169.7 | 100.9 |
| Goodwill | 3,384.8 | 3,315.7 |
| TOTAL ASSETS | $ 33,649.2 | $ 31,339.3 |
| LIABILITIES AND SHAREHOLDERS’ EQUITY/(DEFICIT) | ||
| Current liabilities: | ||
| Accounts payable | $ 1,888.2 | $ 1,595.5 |
| Accrued liabilities | 2,245.8 | 2,194.7 |
| Accrued payroll and benefits | 852.5 | 786.6 |
| Current portion of operating lease liability | 1,496.4 | 1,463.1 |
| Stored value card liability and current portion of deferred revenue | 1,911.2 | 1,781.2 |
| Current portion of long-term debt | 2,748.2 | 1,248.9 |
| Total current liabilities | 11,142.3 | 9,070.0 |
| Long-term debt | 14,570.9 | 14,319.5 |
| Operating lease liability | 9,070.6 | 8,771.6 |
| Deferred revenue | 5,826.1 | 5,963.6 |
| Other long-term liabilities | 717.9 | 656.2 |
| Total liabilities | 41,327.8 | 38,780.9 |
| Shareholders’ deficit: | ||
| Common stock ($0.001 par value) | 1.1 | 1.1 |
| Additional paid-in capital | 548.7 | 322.6 |
| Retained deficit | -7,700.6 | -7,343.8 |
| Accumulated other comprehensive income/(loss) | -535.2 | -428.8 |
| Total shareholders’ deficit | -7,686.0 | -7,448.9 |
| Noncontrolling interests | 7.4 | 7.3 |
| Total deficit | -7,678.6 | -7,441.6 |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY/(DEFICIT) | $ 33,649.2 | $ 31,339.3 |
